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STANDARD FORMS OF CONTRACT

JCT 2016 AND 2024

INTRODUCTION

We can deliver workshops on any of the following JCT contracts, including the latest 2024 suite of contracts. Our workshops will cover the following forms:

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  • JCT Design and Build Contract

  • JCT Intermediate Form of Contract

  • JCT Minor Works

  • JCT Design and Build Sub-Contract

  • JCT Major Project Form

THE MAIN AREAS OF FOCUS IN JCT WORKSHOPS WILL BE:

  • Examining contractual obligations for workmanship and design (achieving a specified design life; fit for purpose and reasonable skill and care)

  • Novation (Examining procedures for novation of the Employer’s design team and how JCT deals with this)

  • Consenting to materials and goods of a lesser quality (is this a variation or just consent?)

  • Discrepancies and ambiguities in or between contract documents (which takes precedence and is an instruction to resolve a discrepancy treated as a variation and/or a Relevant Event?)

  • Subcontracting (conditions of subcontracting and obligations to provide collateral warranties)

  • Instructions and variations (payment of instructions not in writing, what constitutes a written instruction, correctly valuing variations, daywork and what is a fair valuation?)

  • Extensions of Time and Liquidated Damages (Notice obligations, Relevant Events, assessment rules for extensions of time, Employer’s obligations on non-completion and notices of intention to deduct, calculation of liquidated damages)

  • Interim and Final Payments (valuation rules for stage and progress payments, administering payment for materials off site and dealing with advance payment terms; payment and pay less notices).

  • Loss and Expense (notice obligations for loss and expense being a condition precedent to payment; a brief insight into how to effectively ascertain loss and expense for delay and disruption)

  • Practical completion, partial possession and early occupation (an examination of the differences between the provisions and the contractual effect each milestone being certified and implemented)

  • Defects (notifying defects, timescales to correct defects, accepting defects and latent defects occurring outside the Rectification Period)

  • Insurances and Insurance Options (all risks policies and responsibility to pay the Contractor for loss and/or damage caused by specified perils)

  • Termination (notices of default, grounds for termination, consequences of termination and common law rights)

LEARNING OUTCOMES

Attendees will acquire an all-round understanding of the key provisions of the JCT and how they should be administered, including in regard to any two stage tender. The speaker will provide attendees with useful templates for recording verbal instructions, daywork and sample notices for delays and loss and expense, which can be utilised by you after the training.  The trainer will also refer to any key construction cases to assist with interpreting the correct interpretation of various provisions.

DURATION OF WORKSHOP

Half or Full Day

NEC 3 & NEC 4 SUITE OF CONTRACTS

INTRODUCTION

We can deliver workshops on the NEC 3 or NEC 4 suite of contracts. Our workshops will cover the following forms an options:

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  • NEC Engineering and Construction Contract (Main Options A, B, C, D and E)

  • NEC Engineering and Construction Sub-Contract (Main Options A, B, C, D and E)

  • NEC Short Form of Contract

  • NEC Professional Services Contract

COURSE CONTENT

  • Working in a spirt of mutual trust and co-operation (clause 10.1 – is there an obligation to act in good faith and what is this?)

  • Successfully completing Contract or Sub-Contract Data (Parts One and Two) (Tips and advice on how to effectively complete the entries to these key documents and how such entries affect your business commercially)

  • Early Warning and Early Warning Meetings (obligations relating to early warning notices, how to draft early warning notices with examples and how to conduct early warning meetings)

  • Time obligations (Conditions for key dates, sectional completion, planned completion versus the completion date)

  • Programmes (How to prepare a programme for acceptance and how to show float and time related risk to ensure compliance)

  • Testing and Defects (Defect correction periods, limitation periods for latent defect claims, obligations to correct defects and time periods)

  • Payment (interim and final accounting procedures and how to interpret the correct payment procedure, including release of retention)

  • Valuation (A commentary of how the amount due is assessed for the different main options; pricing an activity schedule to maximise cash flow, understanding target contracts)

  • Schedule of Cost Components (for Main Option C, D and E, a look at the definition of Defined Cost and applying the Schedule of Cost Components and the Fee.

  • Compensation events (Notice requirements,  assessing quotations and how to interpret the definition of Defined Cost, what is included in the Fee, sanctions for not complying with timescales, how does a compensation event become implemented and is this binding on both parties, assessing extensions of time and who owns the float and any allowances for time related risk in any such assessment)

  • Insurances and indemnities (an examination of the risks owned by different contracting parties and the responsibility to insure such risks)

LEARNING OUTCOMES

All attendees will acquire an all-round understanding of the key provisions of the NEC suite of contracts and how they should be administered. The speaker will provide useful templates for recording and tracking notifications and quotations for compensation events as well as providing sample notices for compensation events and early warnings.

DURATION OF WORKSHOP

Half Day or Full Day

FIDIC SUITE OF CONTRACTS

INTRODUCTION

Many industrial, engineering and processing developments adopt one of the different forms (referred to as different colours) of FIDIC, which is an internationally used form of contract adopted in a variety of different countries worldwide. We have speakers who have in-depth knowledge and practical experience of the different versions of FIDIC. Our training sessions will focus on the colour book that suits your requirements.

COURSE CONTENT

  • Introduction to FIDIC (contractual responsibilities and duties of the Employer, the Engineer and the Contractor)

  • Structure of FIDC (A commentary on the General Conditions, Particular Conditions, Forms of Tender, Contract Agreement)

  • Subcontractors (obligations and conditions for subcontracting, nominated subcontractors)

  • Plant, materials and workmanship (duties on provision of staff and labour  and responsibility for plant and materials on and off site, including ownership)

  • Design responsibility (depending on which colour book, an examination of how design responsibility is allocated and the level of design liability such as fit for purpose versus reasonable skill and care)

  • Contract Price and Payment (interim payment and final account obligations, rights to set off)

  • Commencement and delays (time obligations examined and a commentary on grounds for an extension of time and notifying delays)

  • Instructions and Variations (written and verbal instructions, valuation rules and quotation procedure for additional time and cost)

  • Take over and Completion and Liquidated Damages for Non-Completion (the effect of the Employer taking over the works and procedures and conditions of achieving completion and provisions for liquidated damages)

  • Risk and responsibility (analysing how risk is apportioned and obligations to insure indemnity obligations by both Employer and the Contractor, including force majeure)

  • Claims and Disputes (format and conditions of additional cost claims and a review of different dispute resolution forums under the FIDIC forms by reference to the applicable law of the relevant jurisdiction)

  • Particular Conditions (amendments to the General Conditions – a brief overview)

LEARNING OUTCOMES

All attendees will acquire an all-round understanding of the key provisions of the General Conditions of the FIDIC suite of contracts and how they should be administered. The speaker will tailor the session to suit any specific colour book of FIDIC that is your preference, depending on the nature of work you are providing. The speaker will offer a valuable insight into different case studies of how to successfully administer this form, along with any typical pitfalls so you can identify these and prepare for them from the outset.

DURATION OF WORKSHOP

Half or Full Day

IChemE SUITE OF CONTRACTS

INTRODUCTION

The IChemE suite of contracts is a commonly used form of contract for performance based contracts for the design and construction of process plant and output-based projects. The course is an interactive workshop, focussing on the IChemE approach to risk, payment and various liabilities. The IChemE has a number of different versions, each referred to by a different colour.

COURSE CONTENT

  • General introduction to performance based contracts (a high level introduction and a review of the different forms and when they should be used)

  • The obligations of the parties (an overview on the obligations of the Purchaser, the Contractor)

  • IP, Patent and Copyright (who owns patents and copyright in design, material and technology and applicability licenses to use)

  • Limitation on liability and caps on liability (provisions for excluding and limiting indirect and consequential losses and imposing caps on liability)

  • Instructions and Variations (variation procedure and required forms of instruction; a commentary on the valuation rules and how these are applied in practice)

  • Defect and care for the works (Contractor’s obligations to correct defects and time-periods in which to do so; accepting defects and maintenance of the works taken over and/or after completion)

  • Subcontractors (obligations and conditions for subcontracting, nominated subcontractors)

  • Design responsibility (an examination of how design responsibility is allocated and the level of design liability such as fit for purpose versus reasonable skill and care)

  • Contract Price and Payment (interim payment and final account obligations, rights to set off)

  • Take over and Completion and Liquidated Damages for Non-Completion (the effect of the Employer taking over the works and procedures and conditions of achieving completion and provisions for liquidated damages)

  • Risk and responsibility (analysing how risk is apportioned and obligations to insure indemnity obligations by both Purchaser and the Contractor, including force majeure)

  • Claims and Disputes (a review of dispute resolution forums under the IChemE forms by reference to the applicable law of the relevant jurisdiction)

  • Termination (a look at the different grounds for termination and rights to terminate for convenience)

LEARNING OUTCOMES

All attendees will acquire an all-round understanding of the key provisions of the General Conditions of the IChemE suite of contracts and how they should be administered. The speaker will tailor the session to suit any specific colour book of IChemE, depending on the nature of work you are providing. The speaker will offer a valuable insight into different case studies of how to successfully administer this form, along with typical pitfalls so you can identify these and prepare for them from the outset.

DURATION OF WORKSHOP

Half Day or Full Day

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