Understanding JCT standard building contracts by David Chappell

By David Chappell

Contractor's duties -- coverage -- 3rd events -- paintings in development -- cash -- Claims -- the top -- Dispute solution

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In one instance, what appeared to be a sound judgment excluding the situations where the contractor was negligent has been overturned by the Court of Appeal [8], which seems to suggest that the courts themselves are not finding it easy to interpret the clauses. In the light of the different decisions, the basic principle under the 2011 JCT contracts appears to be that if damage, which falls under one of the categories of specified perils, is caused to the existing structure, a claim can be made under the employer’s insurance even where the damage is a result of the contractor’s negligence.

It should also be noted that there is no provision for professional indemnity insurance in MWD. Therefore, if the contractor is required to carry out any design as part of the CDP, a suitable clause must be inserted requiring such insurance to be taken out. 4B, to the extent that the damage is due to the contractor’s or any sub-contractor’s negligence or default. The contractor will be liable to a partial extent if it is partially at fault and damage is caused to surrounding buildings or passing vehicles.

2. Nominated sub-contractors and suppliers have now been removed from SBC. Domestic sub-contractors SBC contains further important provisions with regard to what it terms ‘domestic sub-contractors’. This is now the only kind of sub-contractor in SBC since nomination has been removed. 8 provides the employer with a way of narrowing the choice of sub-contractor in appropriate cases. The system is that the work to be done must be measured or described adequately in some other way in the bills of quantities so that it can be priced by the contractor.

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