Certificates

1. Trent Global College Certificates • JCT 11 SBC allows for 10 different kinds of certificates. • IC, ICD,MW AND MWD 11 has 6 • DB 11 has none. • Many of these certificates within each contract are not financial

2. Trent Global College Interim Certificates • Interim certificates (under cls 4.9, 4.10, 4.11, 4.12 4.13 and 4.14) are a contract mechanism for confirming that an instalment of the contract sum is due to the contractor.

3. Trent Global College Pay less notice • Paying parties are required to either pay the notified sum specified in either the payment notice or default payment notice, by the final date for payment or serve an effective pay less notice. • This allows the payer to amend the sum due if it is later discovered that work covered or the amount notified within the payment notice turns out to be unsound.

4. Trent Global College Effects of certificates • JCT SBC 11 and IC 11 are based on a contract administrator’s valuation of work done each month.

5. Trent Global College The Final account • JCT – SBC, IC, ICD. • Contractor to supply all relevant documents to the contract administrator or quantity surveyor not later than 6 months after practical completion. • The QS not later than 3 months thereafter to prepare a statement of the adjusted contract sum.

6. Trent Global College Final Certificate (JCT SBC cl 4.15) • Rules for issuing a final certificate differ under SBC and IC/ICD. • Under SBC- • Must be issued not later than 2 months from the latest of the following: • End of the rectification period • Issue of certificate of making good. • Date the statement and ascertainment is sent to the contractor.

7. Trent Global College • Under IC and ICD- • Issue of final certificate must take place within 28 days of the latest of either of the • Sending to the contractor the computations for the adjusted contract sum or • The issue of the certificate of making good.

8. Trent Global College • With SBC, IC and ICD the final certificate must: • State the adjusted contract sum • The amounts previously certified • The balance expressed as either a sum due to the employer or a sum due to the contractor. The employer or contractor must pay the outstanding balance within 28 days of the date of issue.

9. Trent Global College What does the Final Certificate mean: Unless adjudication, arbitration or other proceedings have been commenced by either party within 28 days of the date of issue the final certificate is conclusive evidence that:

10. Trent Global College • Where quality or standards of materials, goods or workmanship are expressly stated to be a matter for the contract administrator’s satisfaction, he or she is satisfied. • The contract terms requiring adjustment of the contract sum have been correctly applied.

11. Trent Global College • All due extensions of time or adjustments to the completion date have been given. • Reimbursement of loss and/or expense is in final settlement of all matters under clause 4.23 (SBC), 4.17 (IC and ICD)

12. Trent Global College The only exceptions are in cases of fraud or accidental inclusions or exclusions of work, materials or figures in any computations or arithmetical error.

13. Trent Global College Retention • JCT cls: 4.18, 4.19 and 4.20) • Retention is an important feature of the construction industry.

14. Trent Global College Adjustments to the Contract Sum (under cls: 4.2, 4.3 4.4, 4.23, 4.24 and 4.25): • Variations. • Loss and/or Expense.

15. Trent Global College Used for - • Reimbursement of the contractor for specific expenses caused by the contract administrator or employer or by specific events outside the control of the contractor. • Payment for extra work instructed by the contract administrator. • Reimbursement of extra expense brought about by market fluctuations affecting the contractor’s inputs.

16. Trent Global College Variations Under the JCT standard forms of contract a variation is defined within clause 5.1 as – The alteration or modification of the design or the quality or quantity of the Works from that shown in the contract documents.

17. Trent Global College • Variations can therefore include: • Additions, • Omissions • Substitutions • Alterations of kinds or standards of materials • The removal from site of materials delivered for the works (unless they were defective in the first place.)

18. Trent Global College Additional Loss and/or Expense. • JCT cls: 4.23, 4.24 and 4.25. • Most legal text books do not contain a succinct definition of loss and expense.

19. Trent Global College • The categories of loss and expenses which may be claimed by a contractor are broadly as follows :- • Prolongation costs • Disruption costs • Finance charges • Cost of additional management time • Damages or costs payable to third parties. • Note that there is an overlap between a claim for variations and loss and expense.

20. Trent Global College • Three types of construction claims: • contractual claims, which are a request for reimbursement of direct loss and or the cost occurring under provisions of the contract conditions. • These can be requests for compensation resulting from a breach or a series of breaches under the contract

21. Trent Global College • Secondly are quantum meruit claims, which are requests to recover sums in excess of the contractual price on the basis that they constitute a ‘reasonable value of service’. • Third are ex gratia claims, which are requests for compensation due to unforeseen hardship or difficulty in performing the contract, or that exceed the scope or ambit of the contract.

22. Trent Global College • Contractual claims arise under the terms of the contract. • It is the contract that gives entitlement to the claim; hence it is important to find the relevant provision upon which to found the claim. • Without this, the claim, however well presented, will fail.

23. Trent Global College • Contracts set out what it is that can be claimed and what cannot be claimed. • The principle elements contained in the claim will include an outline of the work affected, the manner in which it was affected, and the comparator and method of comparison to be used to ascertain the quantity of loss.

24. Trent Global College • Generally, contractual claims may be identified as falling into one of the following main groups: • Changed conditions. Conditions different from that represented by the contract documents, or known at the time of bidding on the work, such as different soil conditions, or unknown obstructions etc.

25. Trent Global College • Additional work. Disputes over the pricing and timing of additional work required, or even whether a piece of identified work is in the contract or not. Beware particularly of omissions in the design documents, requiring changes to make a system work, especially if they appear in a subtle way through the shop-drawing review and approval process.

26. Trent Global College • Delays. These refer to delays strictly beyond the contractor's control. • They may be caused by the owner directly, or by one of his agents. • A prime example is failure to give access to the site of the work in a timely way. or equipment promised by the owner is not delivered on time. More frequently, working drawings are not provided in time to suit the work, or shop drawings are not reviewed in a timely manner.

27. Trent Global College • Disruption claims can be defined as the lawful or justifiable request for more reimbursement or payment to cover the extra cost and or time required to complete a project as a result of disruption, a change in the terms of the contract, or as a result of unforeseen conditions and circumstances arising (Gibbs & Hunt, 2009).

28. Trent Global College • Disruption consists of the costs of inefficient working and the increased cost to the Contractor of executing work at a different time or in a different sequence to that anticipated, e.g., unforeseen winter working.

29. Trent Global College • Contract time. Disputes over a contractor's request for time extension or an alteration to the completion date on account of changed conditions, required changes to the contract, or owner caused delays.

30. Trent Global College • Prolongation costs consist of the costs of on-site overheads and (in JCT Contracts or at common law) off-site overheads.

31. Trent Global College NON CONTRACTUAL CLAIMS:

32. Trent Global College Quantum Meruit “what the job is worth” Claim for payment made at Common law and outside the provisions of a contract.