The JCT Major Project Form

The JCT Major Project Form......Page 1
Background......Page 9
Preface......Page 17
Abbreviations......Page 18
Introduction and background to the Major Project Form......Page 19
Who is this contract for?......Page 20
Some significant features......Page 21
The contract documents......Page 22
The requirements......Page 23
The proposals......Page 24
Execution and completion - clause 1.1......Page 26
Contractor as planning supervisor and principal contractor -clauses 1.2 and 1.3......Page 31
The Construction (Design and Management) Regulations 1994......Page 32
Compliance with instructions - clause 2.1......Page 33
Contractor failing to comply with instruction - clause 2.3......Page 36
Compliance with statutory requirements - clause 3.1......Page 38
Fees and charges - clause 3.2......Page 39
Civil liability for breach of 'Statutory Requirements'......Page 40
Introduction......Page 41
Discrepancies within the requirements - clause 4.2......Page 42
Discrepancies between the requirements, proposals and statutory requirements - clause 4.4......Page 44
Standards of design, materials and workmanship - clause 5......Page 45
Background law - design - workmanship and materials......Page 46
Materials and workmanship......Page 51
The contractor's responsibility for the requirements - clause 5.1......Page 52
Contractor's design warranties - clause 5.2......Page 54
Contractor to use skill and care - clause 5.3......Page 55
Kinds and standards of materials and goods - clause 5.4......Page 60
Standards of workmanship - clause 5.5......Page 66
Contractor to prepare the design documents - clause 6.1......Page 67
Content and timing of submission of design documents - clause 6.2......Page 69
Employer's response - clause 6.3......Page 70
Employer's explanation of why it considers that the design document is non-compliant - clause 6.5......Page 72
Action required from the contractor - clause 6.6......Page 73
Contractor's challenge - clause 6.8......Page 76
Significance of contractor not employing the challenge procedure - clause 6.9......Page 78
Brief background......Page 79
Some points to note......Page 81
Background......Page 83
Ground conditions at contractor's risk - clause 8.1......Page 87
Contractor's proposal treated as giving rise to a change - clause 8.2......Page 88
 Extensions of time - clause 12......Page 10
Force majeure - clause 12.1.1......Page 114
Specified perils - clause 12.1.2......Page 117
Exercise of Government powers - clause 12.1.3......Page 119
Terrorism - clause 12.1.4......Page 120
Changes - clause 12.1.5......Page 121
Other persons on site authorised by the employer - clause 12.1.6......Page 122
Contractor validly suspending - clause 12.1.7......Page 123
Other breaches or acts of prevention of the employer - clause 12.1.8......Page 124
Clause 12.1 proviso......Page 125
Procedures and timetable for adjustments to completion date......Page 126
Notification - clause 12.2......Page 127
Employer's response - clause 12.4......Page 129
Post practical completion review - clause 12.6......Page 132
Some specific points to which the employer must have regard in adjusting the completion date - clause 12.7......Page 134
No earlier completion date - clause 12.8......Page 138
Introduction......Page 139
Employer's reaction - clause 13.2......Page 140
Bonus - clause 14......Page 141
The bonus provision - clause 14.1......Page 142
 Employer's representative - clause 15.1......Page 143
Employer may appoint others - clause 15.2......Page 146
Summary......Page 147
Instructions following failure to carry out work in a good and workmanlike manner not covered......Page 148
Instructions to open up or test - clause 16.1......Page 149
Instructions to remove non-complying work, materials or goods from the site - clause 16.2.1......Page 152
Instructions for non-complying work, materials or goods to be used - clause 16.2.2......Page 153
Consequential instructions - clause 16.2.3......Page 155
Opening up, testing or inspection - clause 16.2.4......Page 156
Background......Page 158
Summary of clause 17......Page 159
Instructions to remedy defects - clause 17.1......Page 160
Defects not remedied by contractor - employer's options - clause 17.3......Page 162
Introduction and background......Page 165
Summary of clause 18......Page 174
Execution of Model Form of Novation Agreement - clause 18.2......Page 175
Appointment of named specialist - clause 18.3......Page 176
Contractor solely responsible for pre-appointed consultants and named specialists - clause 18.4......Page 178
Consequences if contractor fails to enter into a contract - clause 18.5......Page 179
Contractor not to prejudice employer under form of novation or specialist sub-contract - clause 18.6......Page 181
No termination without consent - clause 18.7......Page 183
Appointment of replacement - clause 18.8......Page 184
Contractor to supply copy of contract - clause 18.9......Page 185
Contractor's responsibilities unaffected by appointment of replacement - clause 18.10......Page 186
Introduction......Page 187
Scope of savings and improvements - clause 19.1......Page 188
Negotiation of the financial benefit - clause 19.3......Page 191
Restrictions on employer's use of contractor's suggested amendments - clause 19.5......Page 192
Background......Page 195
Summary of clause 20......Page 197
The definition of a 'Change'......Page 198
Instructions giving rise to change - clause 20.1.1......Page 203
Value agreed or a fair valuation - clause 20.2......Page 205
Employer's request for a quotation - clause 20.3......Page 206
Contents of the quotation and period of validity - clause 20.4......Page 208
Contractor to provide sufficient detail to enable the employer to assess amounts and periods Acceptance of quotation - clause 20.5......Page 209
Fair valuation - clause 20.6......Page 210
Employer's notification of valuation - clause 20.8......Page 216
Post practical completion review - clause 20.9......Page 217
Background......Page 218
Summary of clause 21......Page 227
Changes excluded - clause 21.1......Page 228
Matters for which employer liable to the contractor in respect of loss and expense - clause 21.2......Page 229
Notification issues - clause 21.3......Page 230
Contractor to provide assessment and supporting information -clause 21.4......Page 234
Employer's obligation to ascertain - clause 21.5......Page 235
Review mechanism - clause 21.6......Page 237
Background......Page 238
Summary of clause 22......Page 247
The contractor's application - clause 22.1......Page 248
Employer's interim payment advice - clause 22.2......Page 249
The requirement to give notice of the proposed payment -clause 22.3......Page 251
The due date and the final date for payment - clause 22.4......Page 254
Contents of the interim payment advice - clause 22.5......Page 255
The final payment advice - clause 22.6......Page 261
The effect of the issue of the final payment advice - clause 22.7......Page 262
Withholding - requirements - clause 23......Page 266
Grounds upon which a withholding can be made......Page 267
Position if there is no valid notice......Page 269
Interest on late payments......Page 270
Treatment of VAT - clauses 25.1 and 25.2......Page 273
Content......Page 274
Rule A - Interim valuations: clause P3.1......Page 275
Rule B - Stage payments: clauses P4.1 and P4.2......Page 276
Rule C - Progress payments: clauses P5.1, P5.2, P5.3, P5.4 and P5.5......Page 277
Rule D - Some other method: clause P6.1......Page 278
Form of contract sum analysis......Page 279
Other points for consideration......Page 280
Third party claims and indemnities......Page 284
Contractor to indemnify employer - clause 26.1......Page 287
Employer to indemnify contractor - clause 26.2......Page 290
Types and extent of cover......Page 291
Insurances required by clause 27......Page 292
Relationship between insurance against loss or damage to the project or existing structures and legal liability under the contract......Page 293
Obligation to insure and comply with Fire Code - clause 27.1......Page 297
Documentary evidence of insurance and failure to insure - clauses 27.2 and 27.3......Page 298
The occurrence of an event - clauses 27.4 and 27.5......Page 300
Excesses - clause 27.6......Page 302
Terrorism cover - clauses 27.7 and 27.8......Page 303
Background......Page 305
Requirements for professional indemnity cover - clauses 28.1, 28.2 and 28.3......Page 306
Prohibition of contractor assignment......Page 315
Employer can assign the benefit at any time without the consent of the contractor......Page 316
Employer's right to assign both benefit and burden of a contract to the funder at any time......Page 317
Background......Page 318
Contracts (Rights of Third Parties) Act 1999......Page 319
The Act in the context of construction projects......Page 322
The JCT approach to the Contracts (Rights of Third Parties) Act 1999......Page 323
Limited exclusion of the Act - clause 30.1......Page 324
Position of the funder - clauses 30.2 and 30.3......Page 325
Position of the purchaser - clauses 30.4, 30.5 and 30.6......Page 327
Contractor to comply with the contract - clause Fl......Page 331
Equivalent rights in defence of liability - clause F2......Page 333
The funder's step-in provisions - clauses F4 to Fll......Page 340
Copyright and design documents - clause F12......Page 345
Assignment - clause F14......Page 346
Notices - clause F15......Page 347
Contractor not liable to funder for delays - clause F17......Page 348
Third party rights from the contractor in favour of the purchaser or tenant (Part PT of the schedule)......Page 349
Contractor to comply with the contract: limits to any claim - clauses PT1, PT2 and PT3......Page 350
Equivalent rights in defence of liability - clause PT4......Page 351
Contractor's professional indemnity cover - clause PT8......Page 352
Applicable law - clause PT13......Page 353
Practical implications......Page 354
Background......Page 357
Summary of termination provisions......Page 369
Material breach and warning notice - clause 32.1......Page 370
The termination notice - clauses 32.2 and 32.3......Page 378
Consequences of a termination of the contractor's employment by the employer - clause 32.4......Page 381
Financial accounting following termination - clauses 32.5, 32.6 and 32.7......Page 384
Material breach, warning notice and termination notice - clauses 33.1, 33.2 and 33.3......Page 389
Consequences of a termination of the contractor's employment by the contractor - clause 33.4......Page 392
Prolonged suspension or removal of insurance cover for terrorism - grounds and notice of possible terminatiocclause 34.1......Page 394
Determination by the employer where terrorism cover is no longer available - clause 34.3......Page 396
Due date and final date for payment - clause 34.5......Page 397
Background......Page 398
Choice of dispute resolution method - clause 35.1......Page 405
Mediation - clauses 36.1 and 36.2......Page 406
Adjudication - clauses 37.1 and 37.2......Page 407
Methods of communication and special situations - clauses 38.1 and 38.2......Page 410
Communications in writing......Page 411
Electronic communications......Page 412
Address for communications......Page 413
Measurement of time where contract specifies a number of days within which an act is to be done......Page 414
Definitions and meanings - clause 39.2......Page 415
Commentary......Page 420
10 The appendix to the Major Project Form......Page 422
Table of cases......Page 427
Table of statutes......Page 436
MPF clause number index to text......Page 440
MPF and WCD 98 clause comparisons......Page 446
Index......Page 448