PGDL 3003 Property Law

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Standard Building Contract With Quantities

Larger works that are designed and/or detailed by the Employer or for their benefit, such as those involving complex contract provisions, the Employer will provide Contractor drawings and bills of quantities. This will help to establish the quality and quantity of the work.

The conditions must be managed by the Architect/Contract Administator and Quantity Surveyor.

Useful for:

Where the Contractor is responsible for designing a specific part(s) or all of the works (Contractor’s Designed Portion);

The location where the works will be performed in sections

Employers from both the private sector and the local authorities.

When named specialists are to be covered, provisions will be made.



A contract is essential as it binds all parties on the agreed terms. There should be compensation for breaching the contract to each party by the violating party.

The JCT includes a variety of provisions that include payment options, insurance, security, and payment options.

Contracts are essential for business transactions, especially when the goods being traded are very valuable.

It serves as a guide, binding the buyer and seller to follow their instructions (under clauses 34, 36).

If there is a dispute between the parties, the contract may be used by the court as proof.

Brute of a contract may result in financial losses for the parties.

As there are many factors and parties involved in construction contracts, it is essential that they contain all terms and conditions.

Contracts may be extended beyond what was expected. If one party does not sign a contract, the other party could feel frustrated.

To lower costs and maintain quality, many technical staff are involved in construction work.

Arbitration or negotiation should be used to resolve a breach of contract. This will allow for the completion of work quickly and save time.

The delay may have been unexpected by the contractor. In such cases, it is important to renegotiate terms with both parties in order to avoid any damages or losses (refer clause 2.28.3).

The joint contracts tribunal contains provisions for transparency and fair payment in the public sector.

The JCT includes provisions that allow for parent company guarantees to be granted and performance bonds.

Clause 2.14 adds third party rights from subcontractors to collateral warranties.

They are adjustments to JCT like the Construction (Management and design Regulations) Regulations.

An amendment to the insurance provisions for structures existing and works to make these flexible.

The following are the provisions for simplifying and revising section 4 payment provisions:

Interim valuation dates have been established for main sub-subcontract and contract levels.

Fluctuations provisions increase flexibility.

A Consolidation and harmonisation of the notice prerequisites to the Construction, Housing Grants and Regeneration Act.

They represent three major changes to our payment system.

A common valuation date.

Modifications to the payment frequency.

Clause 2.17: A mechanism to collect the debt

There are several ways to resolve a dispute.

These include negotiation, litigation, arbitration.

Arbitration attempts to resolve the dispute outside of the court. The referee is responsible for hearing the parties. Both sides need to agree to the outcomes of arbitration.

Arbitration should not favor one side and the arbiter must be impartial. This will ensure that no party feels disgruntled after the conflict has been resolved.

Arbitration is fast, cost-effective and practical. It provides a quick solution that does not favor one of the disputing parties (clause 4.23).

Arbitration is intended to facilitate an amicable resolution, not only benefit one side.

When arbitrating, it is important to take into consideration the feelings and concerns of the other party.

As a negotiator, I would suggest a compromise and attempt to see the situation from the other party’s perspective.

Each party needs to agree to give their best to reach an agreement.

This information will be helpful in reaching a mutually beneficial solution.

It knows how to maintain calm and hold one’s own ground while negotiating to ensure neither side gains an advantage.

Because it involves interactive problem-solving, I prefer mutual bargaining. This requires open communication, mutual respect and mutual trust.

A win-win scenario for both the parties to a negotiation is called an integrative negotiation process.

It can also be called interested-based bargaining. In this process, both sides work together to solve a problem by taking into account each other’s concerns.

It is a combination of both the parties’ needs and concerns.

It aims to combine both sides in the best way possible that can increase the pie. Integration is only possible when there are multiple issues.

This is because the parties involved must work together to find a solution. Refer clause

In litigation, the courts are approached to resolve disputes.

The court hears the case and decides.

It is the most used method for conflict resolution (clause 5.25).

Warranty for the goods.

Warranty covers the buyer for a certain period of time, during which the goods may be returned according to the contract.

The contract should state the validity of the contract as well as the termination procedure.

The contract should specify when it enters into force and the duration of contractual obligations.

This would make it clear that, if the quantity surveyor discovers that the roofing tiles are not of good quality, then the manufacturer will pay the employer in accordance with clause 2.4.

Contracts must guarantee the quality and who is responsible for goods of low quality.

Other terms, such as the restriction that the buyer may not assign the contract to another person without informing their employer.

The seller must transfer the goods to the buyer before the risk of damage or loss passes to the buyer (clause 2.9).

Communication is crucial to ensure there are no misunderstandings after the contract has been signed and executed.

Communication includes many things, including the cost of a contract and the terms that were agreed upon by both parties.

Another important factor to consider is quality assessment, where the organization analyzes whether the vendors can deliver on the agreed terms.

It is important to have competitive bidding.

It addresses cost-savings, financial stability, transaction cost, and profit.

After assessing the brickwork, the quantity surveyor concluded that the roofing tiles had not been properly installed and were being kept in a location where they could leak (clause 2.2).

Consultation and negotiation are key factors in outsourcing and subcontracting.

It gives both the vendor as well as the organization an opportunity to address any concerns they may have regarding the contract and create an environment in which they can resolve the issues.

When the negotiating parties find a common ground, mutual adjustments can occur.

Both sides will be able to agree when they see the world from their own perspectives.

Both sides must be willing to compromise on certain matters.

Arbitration can only be viewed by both parties as a solution to their problems. It aims to reach a win/win solution.

The arbiters need to be patient and work together to achieve a positive outcome for everyone.

Clause 4.23 states that mutual adjustment is a key component in reaching an agreement between the parties to a negotiation.

This brings opposing parties together, by helping them to see things from one another’s perspective.

Find the right arbitrator

It is essential to choose your decider.

Casting is crucial because after-award recourse can be limited.

It is important to consider the possible points of conflict as well as the issues in your dispute at the beginning.

Finding an arbitrator who is competent to conduct a proceeding and give sound rulings on the merits and procedural flexibility. This can reduce the risk of procedural laxity.

It is important to have the ability to work with others and be persuasive.

Choose the right type of arbitration

The best practice is to include institutional arbitration rules in the contract. They provide a framework for procedural decisions and can be referenced.

The tribunal must either make procedural rules from scratch, or pick from existing regulations to adopt. If the appointment is not made or challenged, there is no institution to intervene. This will likely mean that the parties will need to seek relief under clause 2.2.4.

Monetary damages.

The contract breaching party assumes responsibility for the breach and any financial losses.

The contractor may request an extension to the standdown period or PS15,000 compensation per semaine for the inconvenience.

Construction could have been halted because of the presence of contractors on site. The contractor must be compensated for the inconvenience and granted the extension period (clause 2.02).

Specific Performance

Correcting the breach by forcing the violating party to comply with the terms is sometimes the best way to resolve a breach of contract terms.

It is important that the contractor be required to complete the work. This is because it would be costly for an employer to have another contractor on the job (refer to clause 2.27).

Rescission allows a non-breaching party be freed from any performance obligations.

It can sometimes be difficult to determine the exact extent of damage caused by a breached contract.

The employer is responsible for compensating the injured party if the contractor fails to fulfill the contract as agreed.

The interim value of the air conditioning units should not be less than their actual cost. Since they have not been delivered by the manufacturer, the employer should not pay for them.

The roofing tiles are on site. It is the contractor’s fault that the tiles were left in a leaking state. Accordingly, the brickwork will not be considered poor (refer to clause 2.29).

To reach a consensus between contractor and employer on the issue, both parties can talk about the time frame for the certificate’s issue.

After five days from the Due Date, an Interim Payment Certificate can be issued. The payment date will then be extended by nine days in accordance with the main contract. Nineteen days in accordance with the subcontractor (16 days) after the subcontract.

Clause 2.28.4 states that the contractor should pay the employer compensation for moving to a new location without completing the work.

The contract should not have been terminated by the employer even though the contractor was unresponsive. Accordingly, each party should discuss the amount they should compensate the other.

The contractor moved to a new location and violated the contract. He did not respond or provide any assurances to the employer that the contract would be completed.

To avoid being terminated by the employer, the contractor must have completed the contract within a specified time period.

The contractor’s failure to complete the contract within the agreed time frame shows that there were fewer workers on the site than expected. This is a sign of the games the employer had with him. Therefore, the contractor will be held responsible (clause 2.08.3).


In conclusion, there are ways to avoid contract breach. Contracts can still be completed in a timely manner without exceeding the initial cost estimate.

Contracts are intended to protect all parties and ensure that work is completed according to the terms and conditions.

This may not always be possible due to certain factors that cannot be factored in before the contract is signed. In these cases, the contract may have to be reexamined.


The joint contract tribunal; standard building contract edition 2016.

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