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Building Contract Claims, 4th Edition

Building Contract Claims, 4th Edition

David Chappell, Vincent Powell-Smith, John H. M. Sims

ISBN: 978-1-405-14808-5

Apr 2008, Wiley-Blackwell

568 pages

Select type: E-Book

$131.99

Description

Many building contract claims are ill-founded, often because the basic principles are misunderstood. This highly regarded book examines the legal basis of claims for additional payment, and what can and cannot be claimed under the main forms of contract. It includes chapters dealing with direct loss and expense, liquidated damages, extension of time, concurrency, acceleration, time at large, common law and contractual claims, global claims, heads of claim and their substantiation.

The new fourth edition has been substantially restructured and updated. Nearly 100 additional cases have been added as well as four new contracts: the JCT Construction Management and Major Project contracts, the JCT Standard Form of Domestic Subcontract, and the Engineering and Construction Contract (the NEC Form). The book continues to use the JCT Standard Form (JCT 98) as the basis of the text, with important differences highlighted in the other forms. Seventeen forms are dealt with and they have all been updated since the last edition of this book.

This new edition is essential reading for architects, contract administrators, project managers and quantity surveyors. It will also be invaluable to contractors, contracts consultants and construction lawyers.

Preface ix

Acknowledgements xii

Contract abbreviations xiii

PART I 1

1 Introduction 3

1.1 Structure of the book 3

1.2 Definitions 3

1.3 The basis of claims 8

1.4 Architect's and contract administrator's powers and liability to the contractor 10

1.5 Quantity surveyor's powers 14

2 Time 18

2.1 Time of the essence 18

2.2 Time at large 19

2.3 Extension of time clauses in contracts 21

2.4 Concurrency 24

2.5 Acceleration 29

2.6 Sectional completion 34

2.7 The SCL extension of time protocol 36

3 Liquidated damages 42

3.1 The meaning and purpose of liquidated damages 42

3.2 Liquidated damages or penalty 43

3.3 Liquidated damages as limitation of liability 48

3.4 Sums greater than a genuine pre-estimate 49

3.5 Liquidated damages as an exhaustive remedy 50

3.6 Injunction 54

3.7 Liquidated damages in relation to loss 56

3.8 Where there is no breach of contract 57

3.9 Calculation of liquidated damages 59

3.10 Maximum recovery if sum is a penalty 61

3.11 Maximum recovery if liquidated damages do not apply 63

3.12 Bonus clauses 65

4 Basis for common law claims 67

4.1 General 67

4.2 Implied terms in building contracts 69

4.3 Variation of contract 74

4.4 Omission of work to give it to others 75

4.5 Extra work 76

4.6 Possession of site 78

4.7 Site conditions 82

5 Direct loss and/or expense 86

5.1 Introduction 86

5.2 Direct versus indirect 87

6 Potential heads of claim 91

6.1 Basic principles 91

6.2 Two basic claims situations 93

6.3 Foreshortened programme 96

6.4 The ‘knock-on' effect 98

6.5 The more common heads of loss 101

6.6 Cost of a claim 131

7 Causation 132

7.1 Theory 132

7.2 Use of networks 134

7.3 Float 136

8 The global approach 140

9 Substantiation of claims 148

9.1 Principles 148

9.2 Nature of supporting evidence 151

9.3 ‘Scott Schedule' 155

PART II 157

10 Extension of time under JCT standard form contracts 159

10.1 Extension of time position under JCT 98 159

10.2 Extension of time position under IFC 98 190

10.3 Extension of time position under MW 98 195

10.4 Extension of time position under WCD 98 197

10.5 Extension of time position under PCC 98 203

10.6 Extension of time position under MC 98 208

10.7 Extension of time position under TC/C 02 212

10.8 Extension of time position under MPF 03 217

11 Liquidated damages under JCT standard form contracts 221

11.1 Liquidated damages position under JCT 98 223

11.2 Liquidated damages position under IFC 98 225

11.3 Liquidated damages position under MW 98 226

11.4 Liquidated damages position under WCD 98 227

11.5 Liquidated damages position under PCC 98 228

11.6 Liquidated damages position under MC 98 229

11.7 Liquidated damages position under TC/C 02 231

11.8 Liquidated damages position under MPF 03 232

12 Loss and/or expense under JCT standard form contracts 233

12.1 Introduction 233

12.2 Under JCT 98 234

12.3 Under IFC 98 262

12.4 Under MW 98 268

12.5 Under WCD 98 270

12.6 Under PCC 98 277

12.7 Under MC 98 280

12.8 Under TC/C 02 281

12.9 Under MPF 03 284

13 Variations 287

13.1 Introduction 287

13.2 The baseline 288

13.3 Bills of quantities 289

13.4 Functions of the architect and the quantity surveyor 292

13.5 Variations position under JCT 98 293

13.6 Variations position under IFC 98 322

13.7 Variations position under MW 98 330

13.8 Variations position under WCD 98 332

13.9 Variations position under PCC 98 345

13.10 Variations position under MC 98 347

13.11 Variations position under TC/C 02 348

13.12 Variations position under MPF 03 358

PART III 363

14 Claims under GC/Works/1 (1998) 365

14.1 Introduction 365

14.2 Valuation of instructions 365

14.3 Prolongation and disruption 369

14.4 Extension of time and liquidated damages 373

15 Claims under ACA 3 382

15.1 Introduction 382

15.2 Monetary claims under ACA 3 383

15.3 Architect's instructions 390

15.4 Extension of time and liquidated damages 395

15.5 Claims on the final certificate 407

16 Claims under NEC 408

16.1 Introduction 408

16.2 Compensation events 409

16.3 Delay damages 435

17 Sub-contract claims 437

17.1 Introduction 437

17.2 Sub-contract form NSC/C 437

17.3 Domestic sub-contract form DSC 454

17.4 Sub-contract conditions for sub-contractors named under IFC 98 (NAM/SC) 467

17.5 The IN/SC form of domestic sub-contract for use with IFC 98 472

17.6 The Works Contract/2 for use with MC 98 473

17.7 The ACA form of sub-contract 483

APPENDICES 489

Appendix A: Example of build up of contractor's entitlement to reimbursement of direct loss and/or expense under JCT 98, clause 26 491

Appendix B: Extension of time and money claims under DOM/1 514

Table of cases 524

Table of standard form contract clauses 536

Index 544

'Essential reading for all architects, quantity surveyors ... and contractors' Perspective

'The result is a work of considerable scholarship...The book provides an in-depth study which will be of benefit both to practitioners coming new to construction claims and as an update or refresher to those with experience in this field.'Construction Law Journal

'Dotted with good advice which no doubt reflects the great expertise and experience of the eminent authors.' Arbitration 2005

* Few building contracts reach conclusion without some claim being made
* Claims regularly involve substantial sums of money
* A subject of burning interest to both professionals and contractors
* New edition covers the JCT Management Contract and Major Projects Form, plus the New Engineering Contract
* 'Essential reading for all architects, quantity surveyors ... and contractors' - Perspective