JCT 98
construction contract completion
- works are ‘practically complete’ in the opinion of the architect or contract administrator
- can’t be practically complete whilst patent defects of any significance in their constructions are apparent
- latent defects will not prevent certification
- minor items of ‘snagging’ will not prevent certification
- practical completion is completion of all construction work to be done
Extension of time clauses
- Provide necessary flexibility by adjusting the date for completed works in certain defined circumstances
- Allowing contract period to be extended following occurrence of certain events which may otherwise constitute a breach of contract by employer
- To revise contractors contractual obligation to complete by certain date
LAD 1
Provides easy means of recompense for employer if contractor is in culpable delay
LAD 2
Bring certainty to the tender process, rather than tenderer having to price for an unquantifiable contingency if general damages for delays are allowed
LAD 3
Employer is better able to compare and evaluate tenders which have prices a contingency in a uniform way
LAD 4
Allow contractor to assess potential liabilities to the employer, allowing contractor to choose between price of accelerated works or incurring LADs
LAD 5
Frequently used as a commercial cap on financial capabilities of contractor
LAD 6
Permit parties to agree on a sum payable as damages where the task of precise pre-estimation would be impossible or extremely impractical
EEC Objectives
- Flexibility
- Clarity & Simplicity
- Stimulus to Good Management
EEC Flexibility
- used for all disciplines, civil, electrical, mechanical, building
- intended for a range of contractor responsibility
- some terminology is used for all disciplines
- used for Competitive Tender, Target Contracts and Cost Reimbursable Contracts
EEC Clarity and Simplicity
- written in ordinary language, no long sentences
- easily translated to other languages
- familiar order and structure used throughout
- consequent actions after EEC are defined precisely
- compensation events, not claims
- minimal use of text, no cross-reference between clauses
- fundamental objective is to reduce disputes
EEC Stimulus to Good Management
- most important characteristic
- each procedures implementation should contribute to the effectiveness of management of the work
- foresighted co-op management can reduce inherent risks in construction work
- clear division of functionality and responsibility helps accountability and motivates
- people are motivated to play their part in collaborative management if its in their commercial and professional interest to do so
EEC Structure
- Core clauses
- Optional clauses
- Schedule of cost components
- Contract data
- 6 main options cover the basic types of contract
- secondary options provide for such things as the use of multiple currencies, retention, bonds & price adjustment
EEC roles
- Employer
- Project Manager
- Supervisor
- Contractor
- Subcontractor
- Supplier
- Adjudicator
- Arbitrator
