JCT:Minor Works Building Contract 2016 (MW)

Product Information

Used for large, complex projects where the contractor carries out the works and also completes the design It considers two forms of ‘consumer’ building contracts, specifically drafted for domestic projects: The RIBA Domestic Building Contract , together with all of the other RIBA Professional Services Contracts, are available digitally from RIBA Contracts Digital – www.ribacontracts.com . Before booking any JCT Training Courses, make sure you have read the training Terms and Conditions. If the employer is looking for ‘ single point responsibility’ from the contractor, the JCT Design and Build Contract 2016 needs to be amended to make the contractor responsible for all the design, including any design in the Employer’s Requirements, as this is not the case in the unamended JCT Design and Build Contract 2016. This is also commonly insisted upon by a funder.

The RIBA Construction Contracts and Law Report 2022 found that 59% of respondent organisations used JCT forms of contract most often, compared with RIBA building contracts at 15% and NEC contracts at 13%, and that the JCT forms were widely considered “industry standard”. The contract allows for a contract administrator or architect whose role is to administer the contract. Their duties include:Changing the risk allocation of delays by the removal of some of the contractor’s contractual grounds for seeking an extension of time (called Relevant Events), as the default allocation of risk under the contract may be inappropriate. There may be other reasons for an extension of time, for example, delays due to exceptionally bad weather. The contract administrator will assess this. Provisional sums The Minor Works forms are typically seen on small simple commercial projects. Which JCT contract should I choose?

The employer is responsible for the design, and this is usually supplied to the contractor by the architect or design team working on the employer’s behalf. If the appointed contractor is to be responsible for designing specific parts of the works, then a Minor Works Building Contract with contractor’s design must be used.The JCT contracts provide that the employer holds the retention monies in a fiduciary capacity and requires the employer, upon request, to put the retention monies into a separate retention account. This drafting is commonly amended so that the employer can treat the retention as its own funds until it is due to be paid to the contractor.

The contractor may have a design responsibility, such as designing electrical installations. There is provision for a JCT Contract with contractor’s design and in this case the design element needs to be clear. Termination of the works The amount to be stated as due in the interim certificate is made up of the applicable percentage (e.g. 95%, as stated in the Contract Particulars at 4.3) of the value, as at the Interim Valuation Date, of: The JCT Minor Works Building Contract is designed for smaller, basic construction projects where the work is of a simple nature. Minor Works Building Contracts are suitable for projects procured via the traditional or conventional method. JCT contracts are well known in the UK construction industry and are institutionally acceptable to investors and financiers provided certain amendments are made.

There is no independent contract administrator – the employer appoints an agent to act on its behalf The RIBA DBC allows for both contractor design, and for the client to select sub-contractors for specific work; these two provisions can be linked to enable pre-selected sub-contractor design input. This can be very useful where the client has identified preferred firms, for example kitchen suppliers, bathroom specialists, or joinery firms, and/or wishes to develop a long-term relationship with such firms. There is no similar provision in the JCT HO/O or indeed in the JCT MWD.

When the designer is preparing the specification, the full extent of works may not be known so they may include provisional sums or provisional items.The employer may also be looking for greater cost certainty by removing the contractor’s right to claim loss and expense for certain Relevant Matters.