98 Local Authorities With Approx. Quants

Standard Form of Building Contract 1998 Edition
incorporating Ame 1:1999 2: 2000
ContractsTribunal Limited
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Contents
mncmOFAGREEMENT
Recitals(First Seventh)
Page 5
6
ThroughouttheArticles ofAgreementand Conditions, references to footnotesaremade by smallletrersin square brackets.
2
3A 38 4 5 6-1 6.2 7A 78
Articles Contractor's obligations Ascertained Final Sum Architect ContractAdministrator Quantity Surveyor Dispute or difference - adjudication Planning Supervisor Principal Contractor Disputeor difference arbitration Disputeor difference - legal proceedings
Statutoryobligations, notices, fees and charges 6-1 -1 Statutory Requirements to a 5 -6 Divergence - Statutory Requirements and the Contractor's Statement a 7 Change in Statutory Requirements after Base Date
20
6A
6A.1
17
21
Attestation CONDITIONS: PART 1: GENERAL

1 1.1 1.2 1-3 1.4 1*5 1*6 1.7 1.8 1*9 1.10 1.11 1.12
6A.2 6A.3 6A-4
Interpretation,definitionsetc. Methodof referencetoclauses Articles etc. to be read as a whole Definitions [Number not used1 Contractor's responsibility Reappointment of Planning Supervisor or Principal Contractor - notification to Contractor Giving or service of notices or other documents Reckonins Deriodsof davs Employer" Representative Applicable lawElectronic data interchange Contracts(RightsofThird Parties)Act 1999 contracting out Contractor's obligations Contract Documents Contract Bills - relation to Articles, Conditions and Appendix -2 Preparation of Contract Bills errors in preparation etc. Discrepanciesand divergences
a 1
7 3
7
8 8.1
22 22 4 Construc ' nSkill Certificationscheme c b x e r i a l s o r . w d s mance Scecified WO& materials and goods
/?I
f ArchitecVContractAdministrator
23
2 2.1 2-2
2.3 and 2.4 3
reatment o f royalties etc. - indemnityto Employer Architect's/Contract Administrator's instructions treatment of royaltiesetc.
Person-incharge Amount to be includedin Ascertained FinalSum - lnteri Certificates

11
24 24 24 24
Access for ArchitectlContract Administratorto the Works Clerkofworks Contract Bills Quality and quantity of work included inTender Price Measurement and Valuationof work including Variationsendprovisionalsums Definition of Variation Instructions requiring a Variation Instructions on provisional sums Measurement and Valuation ofwork Valuation rules Contractor's right to be present at measurement Value addedtax supplementalprovisions Definitions - VATAgreement Ascertained Final Sum - exclusiveof VAT Possible exemption fromVAT Materialsandgoodsunfixedoroff-site Unfixed materialsand goods on site Unfixed materialsandgoods - off-site
12
4
13
4.1 4.2 4.3 14 14.1 14.2 14.3 14.4 14.5 14.6
24
5 5.1 5-2 5.3 5.4

5.5 5.6 5.7 5.8
79
'
15 15-1 15.2 15-3
27
tract Administrator's certificates Supply of as-builtdrawingsetc. Specified Work
5.9
- Performance
16 16.1 16.2
27
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17 17.1 17.2 17.3 17.4 17.5

18 18.1
PracticalCompletionand defects liability Certificateof PracticalCompletion Defects,shrinkagesorotherfaults Defects etc. Architect's/Contract Administrator's instructions Certificateof Completionof MakingGood Defects Damage byfrost
28
Works in orextensionstoexisting structures All Riskslnsurance Emdovertotakeoutand maintainJoint NamesPolici 22C-3 Terrorism cover certificate 22C.4 LossordamagetoWorks insuranceclaims Contractor'sobligations payment by Employer 22C.5 .1 Terrorism cover non-availability -2 Employer'soptions
22C.2
Partialpossessionby Employer Employer'swish Contractor'sconsent -1 Practical Completion relevant part -2 Defectsetc. relevantpart e 3 Insurance relevant part e 4 Liquidateddamages relevant part
28
22D Insurancefor Employer's loss of liquidated damages clause25.4.3
40
19 19-1 19.2 19-3 19.4 19.5 20 20.1 20.2 20.3 21 21.1 21.2 21.3 22 22.1 22.2 22.3
Assignment andsubtontracts Assignment Sub-letting DomesticSub-Contractors ArchitectWContractAdministrator's consent Sub-letting list in Contract Bills Sub-letting conditionsofany sub-letting NominatedSub-Contractors
23
DateofPo Dateof
23.1 30
Injurytopersonsand property and indemnity to Employer Liabilityof Contractor personalinjury or death indernnitytoEmployer Liabilityof Contractor injury or damageto property indemnitytoEmployer Injury or damageto property - exclusionof the Works and Site Materials
Insuranceagainstinjurytopersonsor property Contractor'sinsurance personalinjury or death injury ordamagetoproperty Insurance liabilityetc. of Employer ExceptedRisks
3 7
43
lnsuranceoftheworks Insuranceof the Works alternativeclauses Definitions Nominatedand Domestic Sub-Contractors benefitof Joint Names Policies Specified Perils
irect loss and/orexpense Relevanceof certainextensions of Completion NominatedSub-Contractors - matters materially affectingregular progressof the subcontractworks direct loss and/or expense
27 27.1 27.2 27-3 27.4 27-5 27-6 surance
36
27.7 27.8
28 28.1 28.2
Determinationby Employer Noticesunderclause27 Default by Contractor Insolvencyof Contractor Corruption Insolvencyof Contractor option to Employer Consequences of determination under clauses 27.2 to 27.4 Employerdecides not to completethe Works Other rightsand remedies
48
28.3 28.4 28.5

28A 28A.1
Determinationby Contractor Noticesunderclause28 Default by Employer suspensionof uncompletedWorks lnsolvencyofEmployer Consequencesof determinationunder clause 28.2 or 28-3 Other rightsand remedies
52
22C-lA Terrorismcover existingstructuresand contents non-availability Employer's options
28A.2 to 28A.6 28A-7 Amountsattributabletoany NominatedSubContractor
Determinationby Employer or Contractor Grounds fordeterminationoftheemployment of the Contractor Consequencesof determination under clause 28A.1.1 clauses 28A.3 to 28A.6
55
@TheJoint Contracts Tribunal Limited 2003
LAWA 98 i9m3)
29
29.1 29.2
Works by Employeror personsemployedor engagedby Employer Informationin Contract Bills Information not in Contract Bills
56
35.9 35.10 35.1 1 35.12
Architect'dContract Administrator's duty on receiptof any noticeunder clause35.8 [Numbernot usedl [Number not usedl [Number not usedl
Certificatesand payments Payments subjectto clause31 e1.1 Interim Certificatesand valuations to a1.5 final datefor payment interest a1.6 [Numbernotusedl -2.1 Interim valuations .2.2 Application by Contractor amount of gross valuation .3 Issue of Interim Certificates .4 Right of suspensionof obligations by Contractor Ascertainmentof amounts due in Interim 30.2 Certificates Off-sitematerialsor goods 30.3 Retention rulesforascertainment 30.4 30-5 Ruleson treatment of Retention .1 Ascertained FinalSum documentsfrom 30.6 Contractor final Valuations under clause 14 a 2 Items includedin the Ascertained Final Sum Interim Certificate final adjustmentor 30.7 ascertainmentof nominatedsub-contractsums Issue of Final Certificate 30.8 30-9 Effect of FinalCertificate 30.10 Effect of certificatesother than Final Certificate
30
56 Paymentof NominatedSub-Contractor 35.13 e 1 ArchitectKontractAdministrator and -2 direction as to interim paymentfor NominatedSub-Contractor .3 Direct paymentof NominetedSubto .5 Contractor e 6 Agreement NSCN - pre-nomination paymentsto Employer
30A 30.1
70
35.15 35.16 35.17
Failureto complete n h n a t d b - c o n t r a cV t works Practicalco Earlyfinal
\ \
71 72 72
31 31.1 31.2 31.3

31.4 31.5 31.6 31.7 to .9 31.10 to.11 31-12 31.13 31.14 32
ConstructionIndustry Scheme (CIS) Definitions Whether Employerisa 'contractor' Payment by Employer valid Authorisation essential Validity of Authorisation Employer'squery Authorisation: CIS 4 reaistrationcard Authorisation: CIS 5 o r b s 6 or a certifvins . document Change of Authorisation
63
relationto Nominated 73 73 73
Vouchers 73 Correctionof errors in makingthe statutory deduction Relation to other clauses Disputesor differences [Number not usedl [Number not usedl Antiquities Effect of find of antiquities Architect'slContractAdministra r's instructionson antiquities foun Directloss and/or expense Determinationor determinationof employmentof NominatedSub-Contractor Architect'JContract Administrator's instructions 73
75
33 34 34-1 34.2
34.3
6
36.1 36.2
CONDITIONS: NOMINATED NOMINATEDSUPP SUB-CO PART2 RS

35
n w
\ \
67 nofa b-cont or
68
36.4 36.5
NOMINATED SUPPLIERS Definitionof a NominatedSupplier Architect's/Co ntract Administratof s instructions Ascertainment of costs to beset against prime cost sum Sale contract provisions Architect's/Contract Administrator's right to nominate supplier Contract of sale restriction, limitation or exclusionof liability
77
General
35.1 35.2
CONDITIONS: PART3: FLUCTUATIONS 37 Choiceof fluctuation provisions entry in Appendix [Numbernot usedl Note: Clauses39and 4Oare published separately 39 39.1 LABOURAND MATERIALSCOSTAND TAX FLUCTUATIONS -1 Deemedcalculationof pricesin the Contract Bills rates of wages etc. .2 Increasesor decreases in rates of wages etc. paymentor allowance -3 Personsemdovedonsiteotherthan and -4 'workpeople'
80
P cedure
35.
nomin
38
ractor
3 5 . 35.6
35.7 35.8
righ t p p a b l e objection ct s/Contr Ad mistrator's instruction on N o m m d o c u m e n t s accomp yingthe i ruction copy of instruct ontractor Contractor's obligations on receiptof Architect's/Contract Administratof s instruction Non-compliancewithclause35~7 Contractor'sobligationto notify Architect/ Contract Administrator
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e 5 Workpeople wage-fixingbody and e 6 reimbursementoffares etc. 39.2 Contributions, leviesandtaxes 39.3 Materials, goods, electricity and fuels 39-4 39.4
Fluctuations work sublet Domestic Sub-Contractors e 1 Sub-letwork incorporationof provisions tolikeeffect .2 Sub-letwork -fluctuations paymentto or allowanceby the Contractor
39.5 to -7 39.5
Provisionsrelating toclause39
-1 Written noticeby Contractor
42.1 1 Variations in respect of Performance Specified Work 42.12 Agreement for additional Performance Specified Work 42.13 Analysis 42.1 4 Integrationof PerformanceSpecifiedWork 42.15 Compliancewith Architect's/Contract Administrator's instructions Contractor's notice of injurious affection 42.16 Delay by Contractorin providing the Contractor's Statement 42.17 Performance Specified Work Contractor's obligation 42.18 Nominationexcluded
-2 Timing and effect ofwritten notices .3 Agreement Quantity Surveyorand Contractor -4 Fluctuationstakenintoaccount in calculatingthe Ascertained Final Sum -5 Evidenceand computations by Contractor a 6 NoalterationtoContractor'sprofit -7 Positionwhere Contractorin default and -8 over completion 39.6 Worketc. towhichclauses39.1to.4not applicable 39.7 Definitionsfor usewith clause39
88
89 93
39-8
Percentageaddition to fluctuation paymentsor allowances USE OFPRICEADJUSTMENTFORMULAE Adjustment of Ascertained Final Sum price adjustmentformulaefor building contracts FormulaRules [Number not usedl Fluctuations articles manufacturedoutside the United Kingdom [Number not used] Powertoagree QuantitySurveyorand Contractor Positionwhere Monthly Bulletins are delaye etc. Formula adjustment failure to complete
97
40
40.1 40.2 40.3 40.4 40.5
40.6
eamountoftaxdue
ply liquidateddamages to be
40-7
argeof Employerfrom liabilitytopaytax Awards in dispute procedures Arbitrationprovisionexcluded Employer's rightwhere receipt not provided VATon determination ANNEX 2 TOTHE CONDITIONS SupplementalProvisionsfor EDI List of amendmentsincorporatedinthis reprint 101
CONDITIONS: PART4 SElTLEMENTOF DlSP ARBITRATION LEGAL PROCEEDINGS
41A 41A.1 41A.2 41A.3 41A.4
Adjudication Application of clause 41A ldentityof Adjudicator Death ofAdjudicator Disputeordifference referto adjudication - referr 41A-5 Conduct ofthe adjudication
104
payment 41A.8 418

41C
Immunity Arbitration
Legelproceedi gs
An)
n u
83
84
85
42.8 42.9 42.1 0
Instructionsof the ArchitectKontract Administrator on other provisionalsums Preparation of ContractBills Provisionalsum for Performance Specified Work errors oromissions in ContractBills
LAWA 98 (9/03)
This Form is for use where the Works have been substantially designed but not completely detailed so that the quantities shown in the Billsare approximate and subject to remeasurement.
Articles of Agreement
Footnote
la1Where the Contractor is not a limited liability company incorporated underthe Companies Acts, seefootnotelqql toclause 35.13.5.3.4. @The Joint Contracts Tribunal Limited 2003
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LA WA 98 (9/03)
Whereas
Recitals
First
the Employer is desirous of Ibl
and hascausedDrawingsandBills of Ap and describe, and are intendedto set out the work to be done;
ed which show
Second
the Contractor has supplied t rred to as the 'Contract Bills')
(hereinafter referre
Third
thesaid Drawi
s stated in the Appendix;
ication of the Construction (Designand Management) Regulations lations') to the work referred to in the First recital is stated in the
Footnotes
Ibl State nature of intended works.
[cl Id1Not used.

[e] Delete if not provided.
[f] See the notes on the JCTBO Fifthrecital in Practice Note 27 'The application of the Construction (Design and Management) Regulations 1994toContracts on JCTStandard Formsof Contract' forthestatutory obligations which must have beenfulfilled before the Contractor can begin carrying outthe Works.
U W A 98 (9/031
iei Sixth
the Employer has provided the Contractor with a schedule ('Information Release Schedule') which states what information the Architectlthe Contract Administrator will releaseand the time of that release;
Seventh
if the Employer requiresany bond to be on terms other than those agreed between the JCTand the British Bankers' Association, the Contractor has been given copies of these terms;
LA WA 98 19/03)
Now it is hereby agreed as follows
Contractor's obligations
Article 1 Forthe consideration hereinafter mentioned the Contractorwill upon and subject to the Contract Documents carry out and complete the Works shown upon, described by or referred to in those Documents.
Ascertained Final Sum
Article 2 The Employer will payto the Contractor such sum or sum accordance with the provisions of these Conditions at the specified in the Conditions and the total of such sums is he Ascertained Final Sum'.
Architect
Article 3A [e1 [hl The term 'the Architect' in the Conditions shall m
rchitect for the purpose of this II nominate within a reasonable time uch death or cessation for that purpose, not rsuch nomination shall ntedpursuant to the utes or differences.[il
r overrule any certificate or opinion or decision essed bythe Architect forthe time being.
IglArticle3A isapplicablewhere the person concerned is entitled to the use of the name 'Architect' under and in accordancewith the Architects Act 1997. Article 38 is applicable in all other cases. Therefore complete whichever is appropriate and delete the elternative. Wherearticle 3A is completedthe expression 'the Contract Administrator'shall bedeemedto have been deleted throughoutthe Conditons.Where article38 is completed the expression 'the Architect' shall be deemed to have been deleted throughoutthe Conditions. @The Joint Contracts Tribunal Limited 2003
[hl Incases where the Works are to be carried out under the direction of officials of the local authority, insert the names of such officials as are to perform the respectivefunctions of 'the Architecvthe Contract Administrator' and 'the Quantity Surveyor' underthis Contract. IilStrikeout words in italics in caseswhere 'the Architect'. 'the Contract Administrator' or 'the Quantity Surveyor' is an official of the local authority.
LAWA 98 19/03
Contract Administrator
Article 38 [e1 [hi The term 'the Contract Administrator' in the Conditions shall mean the said
of
reasonabletime but in any case no laterthan 21 day

appointed pursuant to the procedures under th disputes or differences. [iiProvided always that
the Contract Administrator for the time be
Quantity Surveyor
Article 4 Ihl The term 'the Quantity Surveyor' i
to bethe Quantity Surveyorforthe purposeofthis
vant to the resolution ofdisputes or differencestil.
Disputeor difference
Footnote
ljl Not used.

9
LAWA 98 (9/03)
Planning Supervisor
Article 6.1 [kl The term the PlanningSupervisor in the Conditions shall mean the Architecvthe Contract Administrator or
of
or, in the event of the death of the Planning Supervisor, such other personas the Employershall Supervisor pursuant to regulation 6(5) of the CDM
Article 6.2 Ikl
Principal Contractor
The term the PrincipalContractor in the Conditi Employershall appoint as the Principal CDM Regulations.
ontractor, or, in the ation 6(5)ofthe
Dispute or difference arbitration
Article 7A Where the entry in the Appe
applies has not been deleted
ration in accordancewith
Dispute or difference legal proceedings
ting thatClause 41 B applies has been deleted if any dispute or differenceas to any matter orthing of is Contract or in connectiontherewith shall arise he progress or after the completion or abandonment determinationof the employment of the Contractor it shall be
~~
Ikl Delete articles 6.1 and 6 2 when only regulations7

and 13 of the CDM Regulations apply;see Appendix under the referenceto the Fifth recital. IIIThe JCT 1998editionoftheConstruction Industry Model Arbitration Rules (CIMAR)contains procedures for beginning an arbitration and the appointment of an arbitrator, the consolidation or joinder of disputes including relateddisputes between different parties engaged under different contracts on the same project, and forthe conduct of
10
arbitral proceedings. The objective of CIMAR is the fair, impartial, speedy, cost-effective and binding resolution of constructiondisputes. The JCT 1998 edition of the Construction Industry Model Arbitration Rules (CIMAR) includes additional rules concerning the calling of preliminary meetings and supplemental and advisory procedures which may, with the agreement of the parties, be usedwith Rule 7 (short hearing), B(documents on1y)orS (full procedure).
LAWA 98 (9/03)
~~
Attestation I m l
Footnote
LmlThis pageshouldbe completedwiththe appropriate attestationclause. @The Joint Contracts Tribunal Limited 2003
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LA WA 98 (9/03)
The Conditions
Part 1: General
1
Method of referenceto cIauses Articles etc. to be readasewhole
Interpretation, definitions etc. Unless otherwise specifically st or the Appendix t o any clause meansthat clause of the Conditions. The Articles of Agreement, the Conditions and the Appendix are the effect or operation of any a Appendix must therefore unless otherwise specifical qualification or modification in any other articleor an item in or entry in the Appendix. Unlessthecontextotherwise requiresorthe Articleso in the Appendix specifically otherwise provides, thefo Articles of Agreement, the C beloworasascribed in thea
1.1
1 -2
Definitions
1 -3
Wordorphrase
Adjudication Agreement: Adjudicator: All Risks Insurance: Analysis: Appendix: Arbitrator: Architect:
v o b \
n
r z a n t t o clause 41A as the
s claus
/r/
e Appe
ix to t e Conditions as completed by the Parties. under clause416 to be the Arbitrator.
the pe&t&pointed
EE(,&
Ascertain dFina
n
m:
e
the Articles of Agreement to which the Conditions are annexed, and referencesto any recital are to the recitals set out beforetheArticles. see article2. thedatestated in the Appendix. the Construction (Designand Management) Regulations 1994or any remaking thereof or any amendment to a regulation therein. see clause 17.4.
b q y y :
n
e w o m p l e t i o n of CO pleti
on Dxte:
the Datefor Completion as fixed and stated in the Appendix or any date fixed underclause25. the clauses 1to 37, eitherclause 39 or 40, clauses 41A, 41B, 41C and 42 and theSupplemental Provisions ('theVAT Agreement') annexed to the Articles of Agreement. the person named in article38 or any successor duly appointed under article3B or otherwise agreed as the person to be the Contract Administrator.
13
onditions:
'eT
Previous pa is blank
Contract Administrator:
UWA 98 (9/03)
Wordor phrase
Meaning the Bills of Approximate Quantities referredto in the First recital which have been priced by the Contractor and signed by oron behalf ofthe PartiestothisContract. the Contract Drawings, the Contract Bills, the Articles of Agreement, the Conditions and the Appendix. the Drawings referredto in the First recital which have been signed by or on behalf of the Partiesto this Contract. the person namedas Contractor i Agreement. see clause42. the datefixed and stated in t h e A h d i x \ the date stated in clause23.1. the period named i clause 17.2. see claus 9-2. the+ Agr ment. m
Contract Bills:
Contract Documents: Contract Drawings: Contractor: Contractor's Statement: Datefor Completion: Date of Possession: Defects Liability Period: Domestic Sub-Contractor: Employer: ExceptedRisks:
n u
r in the Articlesof ntamination by radioactivityfrom any nuclearwastefrom the el, radioactivetoxic explosive or es of any explosive nuclear ar componentthereof, pressurewaves or other aerial devicestravelling at sonic
FinalCertificate:
/r/ X&x&f$te
to which clause 30.8 refers.
Employer before any constructionwork underthis Contract has started; and any further developmentof that plan bythe PrincipalContractor during the progress of the Works. the schedule referredto in the Sixth recital or as varied pursuantto clause 5.4.1. anyone of the certificatesto which clauses 30.1 and 30.7 and the entry in the Appendix underthe referencetoclause 30.1.3 refer. the Joint Code of Practice on the Protectionfrom Fire of ConstructionSites and Buildings Undergoing Renovation which is published bythe ConstructionConfederationand the Fire ProtectionAssociationwith the support of the Associationof British Insurers, the Chief and Assistant Chief Fireofficers Association andthe London Fire Brigadewhich is current atthe Base Date, and as may be amendedhevised from timeto time. Joint Names Policy: see clause22.2.
14
LA WA 98 19/03)
Word orphrase
NominatedSub-Contract:
Meaning
an Agreement NSCIA (Articlesof NominatedSub-Contract Agreement),the Conditions NSCK (Conditionsof Nominaredsub-Contrecr~ incorporatedtherein and the documents annexedthereto. see clause35.1. see clause36.1.1. the Numbered Documentsannexedt NSCIA (Articlesofhlominatedsubthe Employer and the Contract0 and the Contractorin the Articl the Employerorthe Contractor the Contractor in the see clause 42.1. the period named in thhPPent;Hc(n/derhe referenceto
NominatedSub-Contractor: NominatedSupplier:
Numbered Documents:
Parties: Party: PerformanceSpecified Work Periodof Interim Certificates: person: PlanningSupervisor:
an individuf, f i - e w r
body corporate. ortheother person
PracticalCompletion: PrincipalContractor:
y othercontractordulyappointed bythe tract ploy s the rincipalContractor pursuantto regulation
ork whether or not identified ined or undefinedwork and a provisional ance SpecifiedWork seeclause42-7. ood Fridayoradaywhich underthe ncial Dealings Act 1971isa bank the person named inarticle4oranysuccessorduly appointed underarticle4or otherwiseagreedas the person to be the Quantity Surveyor. anyoneoftheeventssetout inclause25.4. see clause 30.2. seeclause30-4.1-1and any entry in the Appendix under the referenceto clause 30.4-1.1.
all unfixed materials and goods deliveredto, placedon or adjacent to the Works and intendedfor incorporation therein.
Footnotes
In1[Not used].
101 Amend as necessary if differentPublic Holidays are

applicable.
LA WA 98 (9/03)
15
Wordorphrase
SpecifiedPerils:
Meaning
fire, lightning,explosion, storm, tempest,flood, burstingor overflowingof water tanks, apparatus or pipes, earthquake, aircraft and other aerialdevices or articles dropped therefrom, riot and civil commotion, but excludingExcepted Risks. the Standard Methodof Measurement of BuildingWorks, 7th Edition, publishedby The Royal Institutionof Chartered Surveyors and the ConstructionConfederationcurrent, at the Base Date. see clause6.1.1.
Standard Methodof Measurement:
Statutory Requirements: Tender Price: Valuation: Variation: VATAgreement: Works:
see clause 15.1.
de to these works in 1.4

Contractor's responsibility
[Number not used1 Notwithstandi

ct Administratorto the Employer the Contractorshall remain rks in all respects in accordance
1-5
or issuesthe ce
Principal Contractor notificationto Contractor
ntractor,the Employer tractor in writing of the not specificallystate the manner of giving or service of any notice
Giving or service of noticesor other documents
ate, to the body's registeredor principaloffice it shall be treated as havingbeen
r this Contract an act is requiredto be done within a specifiedperiodof days after ifieddate, the periodshall begin immediatelyafterthat date. Where the period a day which is a Public Holidaythat day shall be excluded.
n the Conditionssubject to any exceptions statedin the notice.[pi
Footnote
IplTo avoidany possibleconfusionoverthequite distinct roles of the Architectlthe ContractAdministrator and Quantity Surveyor andthe role of the Employer's Representative neitherthe ArchitecthheContract Administratornorthe Quantity Surveyor should be appointedas the Employer's Representative. @The Joint Contracts Tribunal Limited 2003
16
LAWA 98 (9/03)
Applicable law
1.10
Whateverthenationality, residenceordomicileoftheEmployer, theContractororanysubcontractor or supplier and wherever the Works are situatedthe law of Englandshall be the law applicableto this Contract. I ~ I Where the Appendix so states, the 'Supplemental Provisionsfor EDI' annexed to the Conditionsshall apply. Notwithstandingany other provisionof this Contract nothing inthis Contractconfers or purportsto confer any rightto enforceany of its terms on any person who is not a patty to it.
Electronicdata interchange Contracts(Rights ofThird Parties) Act 1999 contractingout
1.11 1.12
2
Contract Documents
Contractor's obligations The Contractorshall upon and subjectto the Conditionscar compliancewith the Contract Documents, using materials and standardstherein specified, providedthat quality of materialsor of the standards of work ArchitecthheContract Administratorsuch qua satisfactionof the ArchitecthheContract Admi
2.1
Contract Bills relationto Articles, Conditions and Appendix
2.2
.I
Nothing containedin the ContractBills shall o interpretationofthatwhich iscontained in theA the Appendix.
2.2
Preparation of Contract Bills errors in preparationetc.
-2 .1 the Contract Bills, unless ot specified item or items, are Methodof Measurement; -2 -2 if inthe Con
rein in respect of any rdancewith the Standard thod of preparation omissionof items em which is the subjectof rerrororomission shall error or omissionshall be corrected; or definedwork does not providethe the correctionshall ch information;any 2 shall be treated as if it were a Variation ecthhe Contract Administrator under clause or divergence betweenthe descriptionin the wing documents, includinga divergence documents of the same description, namely:
Discrepanciesand divergences
2.3
2.3 2.3
d by the ArchitecthheContract Administratorunderthe Conditions uch instruction requiresa Variationin accordance with the
ts issued by the ArchitecthheContractAdministrator under
he Contract Administrator a written notice e, and the ArchitecthhecontractAdministrator shall
Footnote
Iql WherethePartiesdonotwish thelawapplicableto thiscontractto be the IawofEnglandappropriate amendments toclause VlOshould be made.
17
L AWA 98 19/03)
2.4
-1 If the Contractorshallfind any discrepancy between his Statementin respectof Performance SpecifiedWork and any instructionof the ArchitecthheContract Administrator issuedafter receiptby the ArchitectnheContractAdministrator of the Contractor's Statement, he shall immediatelygive to the ArchitectnheContract Administrator a written noticespecifyingthe discrepancy or divergence, and the ArchitectnheContract Administratorshall issue instructionsin regardthereto. .2
lfthe Contractororthe ArchitecthheContract Administratorshall find any discrepancyin the Contractor's Statement,the Contractorshall correctthe Statementto removethe discrepancy and informthe ArchitectnheContract Administrator in writing of the correction made. Such correctionshall be at no costto the Employer.
2.4
Amount to be included in calculation of Ascertained Certificates
Where in the Conditionsit is providedthat an amount is to be incl the Ascertained FinalSum then as soon as such amoun m . w such amount shall betakenintoaccountin thecomp ation ofthe following such whole or partialascertainment.
d in th o xtln
alculation of r in part Certificate
4
Compliancewith Arch itect'd Contract Administrator's instructions
Architect's/Contract Administrator's in
-1 The Contractorshallforthwith CO
RW
issuedto him bythe r in respectof which the red by the Conditionsto issue a Variation within the eextentthat he makes dministratorto such om the ArchitectnheContract tructionthe Contractordoes not comply ay other personsto execute any work iveeffecttosuch instruction;and all costs ment may be deductedby him from any ractor underthisContractor may be
4.1
ArchitectnheContract Administr ArchitectnheContract Admini instructions; save tha meaningof clause 14 reasonable objection compliance.
4-1
a2
If within 7 d
Provisi0 ns empowering instructions
4.2
nstructionissuedto him by the ArchitectitheContract est the ArchitectnheContractAdministrator to r shall thereafter comply with the said instruction (neitherParty ing invokedthe procedures underthis Contract relevanttothe sue of the same shall be deemed for all the purposesof this Contract ed by the provisionof the Conditionsspecifiedby the Architectnhe answertothe Contractor's request.
Instructionsto be
ed bythe ArchitectnheContract Administrator shall be issuedin ontractAdministratorpurportsto issuean instructionotherwise II be of no immediateeffect, but shall be confirmed in writing bythe hitectnheContract Administratorwithin 7 days, and if not dissented ArchitecthheContract Administratortothe Contractorwithin 7 daysfrom receiptof the Contractor's confirmationshall take effect as from the expirationofthe latter said 7 days. Providedalways:
-2 .1
that if the ArchitectnheContract Administratorwithin 7 days of giving such an instructionotherwisethan in writing shall himself confirmthe same in writing, then the Contractor shall not be obligedto confirmas aforesaid, and thesaid instruction shall takeeffectasfromthedateoftheArchitect'shhe ContractAdministrator's confirmation; and
18
LAWA 98 (9/03)
4.3
continued
-2
-2 that if neitherthecontractor northe ArchitecthheContract Administrator shall confirm such an instruction in the manner and at the time aforesaidbut the Contractorshall neverthelesscomply with the same, then the Architect/the Contract Administrator may confirm the same in writing at any time priorto the issue of the FinalCertificate, and the said instructionshallthereupon bedeemedto have taken effect on the date on which it was issuedotherwisethan in writing by the Architect/ the ContractAdministrator.
5
Custody of ContractBillsand Contract Drawings Copies of documents
Contract Documents other documents issue of certificate

The Contract Drawingsandthecontract Billsshall remain in the as to be available at all reasonabletimes forthe inspectionof th
lmmediatelyaftertheexecution ofthis Contractthe Arc without charge to the Contractor shall provide him (U provided)with:
-1 one copy certified on behalf of the Employer of th
e 2
5.1
5.2
5.2
5.2 5.2
Descriptive schedules etc. master programmeof Contractor
twofurthercopiesofthe Contract Drawings-
-3 two copies of the unpricedBills of Appr
A eto the Contractorshall ided)with 2 copies of any ssaryfor use in carrying out the er shall providethe Architecthhe sly so provided)with 2 e execution of the Works and within 14days ntractAdministrator underclause 25.3.1 with ionsto take account of that decision. Irl
5.3 -1
.1 theArchitecVtheContra
5.3
schedulesor other like documents referredto in rammefortheexecution ofthe Works orany vision therein referredto in clause 5.3.1-2) shall
e ArchitecVtheContractAdministrator is preventedby the act r or of any personfor whom the Contractor is responsible, the sof the information
Information ReleaseSchedule
5.4
the Employerand Contractor may agree, which agreement shall layed orwithheld, tovary any such time.
Provisionof further drawings ordetails
InformationReleaseSchedulethe Architect/the n from time to time may be necessary without charge with 2 copiesofsuchfurtherdrawingsordetails ably necessarytoexplainand amplifythecontract Drawingsand shall ructions (includingthose for or in regardto the expenditureof provisional e the Contractor to carry out and completethe Works in accordancewith .Such provisionshall be madeor instructionsgiven at a time when, o the progress of the Works, or, where in the opinion of the Architecthhe ContractAdministrator PracticalCompletionof the Works is likelyto be achievedbefore the Completion Date, having regardto such Completion Date, it was reasonably necessaryfor the Contractorto receivesuch further drawingsor details or instructions. Where the Contractor is aware and has reasonable groundsfor believingthatthe Architecthhe ContractAdministrator is not so awareof the time when it is necessary for the Contractorto receivesuch further drawings or details or instructionsthe Contractor
IrlTo bedelated if no masterprogrammeis required.
Footnotes
Is]Words in parenthesesto be deleted if no master programme is required.

19
LAWA 98 (9103)
5.4
.2
continued
shall, if and to the extent that it is reasonablypracticableto do so, advise the Architect/ the ContractAdministrator of the time sufficientlyin advance of when the Contractor needs such further drawingsor details or instructionsto enable the Architectithe ContractAdministrator to fulfil his obligations under clause 5.4.2.
Availabilityof certain documents
5.5
The Contractor shall keep one copy of the Contract Drawings, one copy of the unpriced Bills of Approximate Quantities, one copy of the descriptive schedulesor other like documents referredto in clause 5.3.1.1, one copy of the master programme referredto in clause 5.3.1.2 (unlessclause5-3.1.2 has been deleted)and one copy ofthedrawings and details referredto or his representativeat all reasonabletimes.
Returnof drawings etc.
5.6
Uponfinal payment under clause 30.8 the Contractor shall if schedulesandotherdocumentsof a likenaturewhich beart ContractAdministrator.
Limitstouseof documents
5.7
Contract, and neitherthe Employer,
Issueof Architect's/ Contract Administratofs certificates
5.8
Except where otherwise specificall the ContractAdministrator undert immediately uponthe issueof any su shall send a duplicatecopythereof t
sued bytheArchitect/
supply ofas-built drawingsetc. Performance Specified Work
5.9
houtfurthercharge to the
6
Statutoty Requirements
Statutory oblig Gtiot
charges
6.1
-1
tor shall comply with, and give all notices required by, ent, rule or order made under any Act of Parliament, local authority or of any statutory undertakerwhich to the Works or with whose systemsthe same are or will uirementsto be so compliedwith being referredto in the atutory Requirements'). lfind any divergence betweenthe Statutory Requirementsand all nts referredto in clause2.3 or betweenthe Statutow . Reauirements . f the Architectithe ContractAdministrator requiring a Variation with clause 14.2, he shall immediately give to the Architecthhe written notice specifyingthe divergence. tractor gives notice underclause6.1-2or if the ArchitectltheContract rator shall otherwise discover or receive notice of a divergence between the ry Requirementsandall or any ofthe documents referredto in clause2.3 or he Statutory Requirementsand any instruction requiring a Variation issued in h clause 14.2, the Architectithe Contract Administrator shall within 7 overy or receiptof a notice issue instructionsin relationto the nd insofar as the instructions requirethe Worksto bevaried, they shall be treated as if they were Architect's/Contract Administrator's instructions requiring a Variation issued in accordance with clause 14.2. cy compliancewith clause 6-1-1requiresthe Contractorto supply work before receiving instructions under clause 6.1.3 the Contractor shall supply such limited materialsand executesuch limited work as are reasonably necessary to secure immediate compliance with the Statutory Requirements.
6.1
-2
20
LAWA 98 (9/03)
6.1
-2 The Contractor shallforthwith inform the ArchitecthheContractAdministrator of the emergencyand ofthestepsthat heistaking underclause6.1.4.1.
-3 Workexecutedand materialssuppliedbythe Contractor underclause6.1.4.1 shall be treated as if they had been executed and supplied pursuant to an Architect'da ContractAdministrator's instruction requiring a Variation issued in accordancewith clause 14.2 providedthat the emergency arose because of a divergencebetween the Statutory Requirementsand all or any of the documents referredto in clause 2-3 or between the Statutory Requirementsand any instruction requiring a Variation issued in accordance with clause 14.2, and the Contractor has compliedwith clause 6.1-4-2.
6.1
Providedthat the Contractor complies with clause 6.1.2, the CO liableto the Employer under this Contract ifthe Works do not Requirementswhere and to the extent that such non-comp from the Contractor havingcarried out work in accordance to in clause 2.3 orwith any instruction requiring a Variation I ContractAdministrator in accordance with clause 14.2. lfthe Contractororthe ArchitecthheContract Adm betweenthe StatutoryRequirementsand any C immediatelygive the other a written notices shall inform the Architectlthe Contract A amendmentfor removingthe divergenc shall issue instructionsin regardthereto. instructionsshall be subject to clause 42 provided in clause6-1-7. If afterthe Base Datethere is a cha some alterationor modificationt modification shall be treated Administrator under clause 1 The Contractor shall p or charges (includin any instrument, rul of any local authori any such fees orchar included in thecalcu The provisionsof c local authority or a statutory Contract.
Divergence Statutory Requirementsand the Contractor's Statement
6.1
Administrator
Change in Statutory Requirements after Base Date
6.1
mentswhich necessitates Worksuch alterationor e Architecthhe Contract against liability in respectof anyfees ndable under any Act of Parliament, arliament, or any regulationor byelaw respectof the Works.The amount of axes other than value addedtax) shall be
Feesorcharges
6.2
Exclusionof provisionson DomesticSubContractorsand NominatedSubcontractors
6.3
Inot apply to the execution of part of the Works by a executingsuch work solely in pursuance of its all not be subcontractorswithin the termsofthis
6A
Employer's obligation Planning Supervisor Principal Co ntractor
the Appendix states that ail the CDM Regulations apply
6A.1
-upervisor m R e g k t i 0 n . s ; and
carries out all the duties of a planning supervisor under the
r is not the PrincipalContractor, that the Principal Contractor carries a principalcontractor undertheCDM Regulations.
andwhile he remainsthe PrincipalContractor, the Contractorshall duties of a principal contractor set out in the CDM Regulations;and in ure thatthe Health and Safety Plan has the features required by regulation gulations. Any amendment by the Contractorto the Healthand Safety to the Employer,who shall where relevantthereupon notifythe and the ArchitecthheContractAdministrator. rom the time the Employerpursuantto article 6.2 appoints a successortothe Contractoras the PrincipalContractor.The Contractor shall comply at no costtothe Employerwith all the reasonablerequirementsof the PrincipalContractortothe extent that such requirementsare necessary for compliancewith the CDM Regulations; and, notwithstandingclause25, no extensionoftime shall be given in respectof such compliance.
@The Joint Contracts Tribunal Limited 2003 21
Principal Contractor
LAWA 98 (9/03)
Powersof ArchitecffContract Administrator worknot in accordancewith this Contract
8.4 8.4
If any work, materialsor goods are not in accordancewith thiscontractthe Architect/the ContractAdministrator,without prejudiceto the generalityof his powers, may: notwithstandingthe power of the Architect/theContractAdministrator under clause 8.4.2, issue instructionsin regardto the removalfrom the site of all or any of such work, materialsor goods; and/or after consultationwith the Contractor(whoshall immediatelyconsultwith any relevant NominatedSub-Contractor) and with the agreement of the Employer, allow all or any of such work, materialsor goods to remainand confirmthis in writing to the Contractor (whichshall not beconstruedas a Variation)and wheresoallowedand confirmedan and/or
8-4
8.4
after consultationwith the Contractor (whoshall immediate1 NominatedSub-Contractor)issuesuch instructionsre reasonablynecessary as a conseque such confirmationunderclause8-4-2 necessaryand notwithstandingclaus having had due regardto the Code of Practiceapp clause42).issue such instructionsunderclause8-
8.4
tionortotestas
Powersof ArchitecffContract Administrator non-compliance with clause 8.1.3
8.5
in a proper and
instruction.
Exclusionfrom the Works of persons employedthereon
8.6
9
Treatmentof royaltiesetc. indemnityto Employer
9.1
inthe Contract Billsof any patented articles, processesor orto which he may be put by heldto have infringedany patentrightsin in compliancewith Architect's/Contract Administrator's instructions to any such articles, processes or rightsshall be includedinthe calculationof the
LA WA 98 W O 3 1
23
10
Person-in-charge The Contractorshall constantlykeep uponthe site a competent person-in-chargeand any instructionsgivento him bythe Architectithe Contract Administrator or directionsgivento him by the clerk of works in accordancewith clause 12 shall be deemed to have been issued to the Contractor.
1 1
Access for ArchitectlContract Administrator t o the Works The ArchitecUhe ContractAdministratorand his representativess times have accessto the Works and to the workshopsor othe work is being preparedforthis Contract, and when work is to other places of a Domestic Sub-contractor or a NominatedS shall byaterm inthesubcontractsofaraspossiblesecurea workshopsor placesfortheArchitecVthe Contract andshalldoall thingsreasonablynecessaryto ma accordance with clause 11may be subjectto such re or any DomesticSub-Contractor or any Nominated protect any proprietary right of the Contractor or of Contractorin the work referredto in clause 11. e r
12
Clerk of works The Employershall be entitledto ap inspectoron behalfof the E Administrator, and theCon of that duty. If any direction of noeffectunlessgivenin reg Administrator is e confirmedin writi such direction bei date of issueof that con Administrator's in e duty shall be to act solely as chitect/theContract acilityfor the performance of works the same shall be the Architect/theContract to issue instructionsand unless strator within 2 working days of n and confirmedthen as from the
13
Qualify and quantity of work includedin Tender Price
Contract Bills
/
tion of work including Variations and provisional sums
Definition of Variation
Conditionsmeans: ificationof the designor quality of the Works including substitutionof any work, he kindor standardof any of the materialsor goods to be used in of any workexecutedor materialsor goods brought rforthe purposesof the Works otherthanwork, materials e not in accordancewiththis Contract; er of any obligationsor restrictionsin regardto the matters
4.1.2-4 orthe additionto or alterationor omission of any
such obligationsor restrictionsso imposedby the Employer inthe ContractBills in

.1
e 2
access to the site or use of any specific parts of the site;
.2
24
-2
limitationsofworkingspace;
LAWA 98 (9/031
14-1
continued
a 2 .2
.3 limitationsofworking hours;
a4
the executionor completion of the work in any specificorder;
but excludes 14.1 -3 nominationof a sub-contractortosupply and fix materialsorgoodsortoexecutework of which the measuredquantities have been set out and priced bythe Contractor in the Contract Bills for supply and fixing or execution by the Contractor. The Architemhe ContractAdministrator may, subject to reasonableobjectionset out in clause 4-1-1,issue instruct may sanction in writing any Variation made by the Contra instructionof the ArchitecthheContract Administrator. No ArchitecthheContract Administrator or subsequentlysanction Contract. The ArchitectrrheContractAdministrator shall issue ins -1 theexpenditure of provisionalsums includedin t
-2 the expenditure of provisionalsums includedin
Instructions requiringa Variation
14.2
Instructionson provisionalsums
14.3 14.3 14.3
-11
ctions in r
ard t
Measurementand Valuation ofwork
14-4
.I
-1 Subiecttoclause 14.4.1.2allworkcarn iedouti - h cco pursuance of the Architect's/the C clauses 14.2 and 14-3-1 shall be (inthe Conditionscalledthe 'V Employerand the Contr
clause 2.1 and in instructions under rveyor and such valuation wise agreedby the provisions of clauses SpecifiedWork, with
d the NominatedSub-Contractor be made in accordancewiththe
ct/the ContractAdministrator in regardto the expenditureof aluation relatesto the executionof workwhich can properly be nt such work shall be measured and shall be valued in accordance
Valuation rules
e work is of similar characterto and is executed under similar conditions as out in the Contract Bills and where the quantity of the work was reasonably
is of similar charactertoworkset out in the Contract Bills but is not similar conditionsthereto and/or where the quantity of the work was not reasonablyaccurately forecasttherein, the rates and pricesforthe work so setout shall bethe basisfordetermining thevaluation andthevaluation shall include a fair allowancefor such difference in conditions and/or quantity;
Footnotes
It1Not used.
lul If the Architect/the ContractAdministrator nominates

a subcontractor or supplier by any instructionunder clause 14-3.l.thenthe provisionsofPart2ofthe Conditionsapplyto such nomination.
LAWA 98 i9D3)
25
~~~
14.5
continued
-1 -3 where the work is not of similar character to work set out in the Contract Billsthe
work shall bevaluedat fair rates and prices.
14.5 14.5
.2
[Number not used1
e 3 Inanyvaluationofworkunderclause 14-5-1: .3 . I measurement shall be in accordancewith the same principlesasthosegoverning the preparationofthe Contract Bills as referredto in clause 2.2-2.1; a 3 -2 allowanceshall be madefor any percentage or lumpsu
ContractBills; and
-3 a 3 any amounts pricedin the Preliminariessectionoft 14.3.1 (exceptan instructionfor the expenditu work) shall be included.
14.5
.4 To the extent that the Valuation relates to the e

bevaluedby measurementtheValuation shall efinitionof Prime ConstructionCO
.4 .2 whereth
ployers in that trade have agreed e primecost at the rates set out by the
als employedshall be deliveredfor
ministratoror his authorisedrepresentative owing that in which the work has been executed.
14-5
-5 If
ith any instruction requiringa Variationwork shown on
K 2 7 ? 2
-
anc wi any instructionasto the expenditureof a provisionalsum for iture of a provisionalsum for thatworkdiffersfrom the uch workgiven in thecontract Bills s the conditionsunderwhichany other work is executed, then such rmance SpecifiedWork shall includeallowanceforthe work tion and productionof drawings, schedules or other documents.
Footnote
IvlThere are three Definitions to which clause 1 4 5 4 . 2 refers namely those agreed between the Royal Institutionand the ElectricalContractors Association, the Royal Institutionand the ElectricalContracton AssociationofScotland andthe Royal lnstitutionandthe Heating and VentilatingContractors Association. @The Joint Contracts Tribunal Limited 2003
26
M W A 98 (9/031
14.5
-7 To theextentthatthevaluation does not relatetotheexecutionofworkortotheextent that thevaluation of anyworkor liabilities directly associatedwith a Variation cannot reasonably be effected in the Valuationby the application of clauses 14.5.1 to -6a fair valuationthereof shall be made. Providedthat no allowanceshallbe made under clause 14.5foranyeffect upon the regular progressof the Works or for any other direct loss and/or expensefor which the Contractor would be reimbursedby payment under any other provision in the Conditions.
Contractor's right to be present at measurement
14.6
Where it is necessaryto measurework for the purpose of the Valuationthe Quantity Surveyor shall give to the Contractor an opportunity of being presentatthe time of such measurementand of taking such notes and measurementsas the Contr
mreq
15
Definitions -VAT Agreement
Value added tax
- supplemental provisions
15.1
In clause 15and in the supplementalprovisionspursua Agreement') 'tax' meansthevalue addedtax introduce underthecare and managem and in the VATAgreement ca Any referenceinthe Conditionsto 'Ascertained FinalS exclusiveof any tax and reco chargeablebythe Commissi Tax Act 1994oranyamendmentor re-e underthisContractshaIIbe underthe p Clause IAoftheVATAgreement shallon To the extent that after the Bas becomes exempt from the tax lossofcredit (inputtax contribute exclusively ces to the Employer an amount equalto the
AscertainedFinal. Sum -exclusive of VAT
15.2
Possible exemptionfrom VAT
15.3
16
Unfixedmaterials and goods on site
Materials and goods unfixe Unfixed materials a
16.1
v-w
r off-s
on or adjacenttothe Works and intended
of any such materialsor goods has in ed in any InterimCertificateunderwhich the amount paid by the Employer, such materialsand goods ect to clause 228 or22C (ifapplicable),
Unfixedmaterials and goods offsite
16.2
d items'has in accordance with clause30.3 been includedin any rlyduetotheContractor has been paid by erty of the Employerand thereafter the sponsiblefor.any loss thereof or damagetheretoandforthecost of nd insuranceofthesame until such timeasthey aredeliveredtoand tto the Works whereupon the provisions of clause 16.1 (exceptthe alue" to the words "the property of the Employer, but,") shall apply
Iwl Not used.

1x1Clause 1Acanonly applywherethe
Contractoris satisfiedat the date this Contract isentered into that hisoutputtaxon all supplies totheEmployerunderthisContractwil1 beat eithera positiveora zerorateoftax. LAWA 98 (9/03) @The Joint Contracts Tribunal Limited 2003
27
17
Certificate of Practical Completion
Practical Completion and defects liability

When in the opinion of the Architectlthe Contract Administrator PracticalCompletionof the Works is achieved and the Contractor hascompliedsufficientlywith clause 6A.4, and, if relevant, the Contractor has compliedwith clause 5-9 (Supplyofes-builtdrawingsetc. PerformanceSpecifiedWork),he shall forthwith issue a certificateto that effect and Practical Completionofthe Worksshall bedeemedforall thepurposesofthisContractto havetaken placeon the day named in such certificate.
17.1
Defects. shrinkagesor other faults
17-2
Anydefects,shrinkages orotherfaultswhich shall appearwithinthe DefectsLiability Period, and which are due to materials or workmanship not in accordance with this Contract orto y the Architect/ frost occurring before PracticalCompletionof the Works, shall the Contract Administrator in a scheduleof defectswhich an instruction of the ArchitecthheContract Administrator expiration of thesaid Defects Liability Period, and within a
Administrator does sootherwise instruct then an a such defects, shrinkagesor other faults not made g Final Sum.
Defects etc. Architect's/ Contract Administratot's instructions
17-3
Notwithstandingclause 17-2the Arch considers it necessarysoto do issue i fault which shall appearwithin the De
Certificate of Completionof Making Good Defects
17-4
When in theopin
dministrator any defects, shrinkages or this Contract to havetaken place on the day mpletion of Making Good Defects').
Damage by frost
17.5
In nocaseshall
uiredtomakegoodathisowncostanydamagebyfrost unlessthe ArchitecthheContract due to injury which tookplace before
Employer'swishContractor's consent
efore the date of issue by the ArchitecthheContractAdministrator of ICompletionthe Employerwishes to take possessionof any part or e consent of the Contractor (whichconsent shall not be held) has been obtained, then, notwithstandinganything lied elsewhere in this Contract,the Employer maytake possessionthereof. ContractAdministrator shall thereupon issueto the Contractor on behalf written statement identifyingthe part or parts of the Works taken into giving the date when the Employertook possession(in clauses 18,20-3, -1 referredto as the 'relevant part' and the 'relevant date' respectively). rposes of clauses 17.2,17-3,17.5and 30-4-1.2PracticalCompletionof the art shall be deemedto have occurredand the Defects Liability Periodin rt shall be deemedto have commencedon the relevantdate.
-2 When in the opinion of the ArchitecthheContract Administrator any defects, shrinkages
or other faults in the relevant partwhich he may have requiredto be madegood under clause 17.2 or clause 17.3 have been madegood he shall issuea certificatetothat effect.
28
U W A 98 19/03)
Insurance relevant part
18.1
.3 Asfrom the relevant date theobligation ofthecontractor underclause22Aorofthe

Employer under clause228.1 or clause 22C-2whichever is applicableto insure shall terminate in respectofthe relevantpart but notfurtherorothetwise;and whereclause 22C applies the obligation of the Employerto insure underclause22C.1 shall from the relevant date includethe relevantpart.
Liquidated damages relevant part
18.1
-4 In lieu ofany sum to be paid bytheContractororwithheld ordeducted bytheEmployer
under clause 24 in respectof any period during which the Works may remain incomplete occurring afterthe relevantdate thereshall be paidsuch sum as bearsthesame ratio to thesum whichwould bepaidapartfrom theprovisionsofclause 18astheTenderPrice less the amountcontainedtherein in respectofthe relevantpart bearsto theTender Price;orthe Employer maygivea noticepursuanttoclause30.1-1. such sum from moniesduetotheContractor.
Red
19
Assignment
Assignment and sub-contracts

-1 NeithertheEmployer northeContractorshalI,with assignthis Contract. the Employerof his freehold o leasehold interest in, the who1
19.1
derogationfrom the rightassi

Subletting DomesticSub Contractors Architect's/ Contract Administrator's consent
ateof any assignment. f the Works otherthan a
19.2
.1 A personto who
19.2
-2 The Contractors
ent of the Architecthhe Contract remainwholly responsiblefor carrying accordance with clause 2.1
Subletting list in Contract Bills
n clause 19.3.1 must comprise not less than three persons. Either e ArchitecvtheContractAdministrator on his behalf)or the entitledwith theconsent of theother, which consent shall not be xecution of a binding sub-contractagreement. time priorto the execution of a binding sub-contractagreement and for r reason less than three persons namedin the list are able and willing to tthe relevantworkthen rthe Employerand the Contractor shall by agreement (which agreement not be unreasonablydelayedorwithheld) add IyI the names of other ons so that the list comprises not less than three such persons orthe workshall becarriedout bytheContractorwho may sub-lettoa DomesticSub-Contractorin accordance with clause 19.2. DomesticSub-Contractor.
Footnote
[y]Any such addition must be initialled by or on behalf oftheParties.
UWA 98 19m3)
Subletting conditions of any subletting
19.4 19.4
ltshall beacondition inany sub-letting towhichclause 19.2or 19~3refersthat:

. I the employment of the Domestic Sub-Contractorunderthesub-contractshall determine immediatelyuponthe determination(for any reason)of the Contractor's employment underthis Contract; and
19.4
-2 the sub-contractshall providethat: -2 -1 subjecttoclause 16.1 of these Conditions(inclauses 19-4.2.2to.4 called the 'Main ContractConditions'), unfixed materialsand goods deliveredto, placedon or adjacenttothe Works by the sub-contractorand intendedtherefor shall not be removedexceptfor use on the Works unlessthe Contra writing to such removal, which consentshall not be unr withheld;
.2
where, in accordance with clause30.2 of the Main any such materialsor goods shall have been inch
propertyoftheEmployerandth or goods are and have become t
-2 -3 providedthat if the Contractors goods beforethe value therefor
uch materialsor
ayment by the Contractorbe
-2 -4 the operationof clauses 1
19-4
-3 thesub-contra
contractor in additionto the amount not iod until such payment is made; that the rent atthe date the paymentby the Contractor of simple interestshall not in any circumstances tract or of any rightsof thesub-contractorunderthe ofthe performanceof his obligationsto the determinationof his employmentforthefailure by
NominatedSubContractors
Contract relatingto NominatedSub-Contractors are set out in Part
als or goods or to executework.
Sub-Contractor.
Injury to persons and property and indemnity to Employer
toEmployer
The Contractorshall be liablefor, and shall indemnifythe Employeragainst, any expense, liability, loss, claim or proceedings whatsoeverarising under any statuteor at common law in respect of personalinjury to orthe death of any personwhomsoeverarising out of or inthe course of or caused by the carryingout of the Works, except to the extentthat the same is due to any act or neglect of the Employer or of any personfor whom the Employeris responsible includingthe persons employedor otherwiseengaged by the Employer to whom clause 29 refers.
30
L AWA 98 (9/03)
Liability of Contractor injuryor damage to property indemnityto Employer
20-2
The Contractorshall be liablefor, and shall indemnifythe Employeragainst, any expense, liability, loss, claim or proceedingsin respect of any loss, injury or damagewhatsoeverto any property real or personal in so far as such loss, injury or damage arises out of or in the course of or by reasonofthe carrying out of the Works and to the extent that the same is due to any negligence, breachof statutory duty, omission or default of the Contractor, his servants or agents or of any person employedor engaged upon or in connectionwith the Works or any part thereof, his servantsor agentsorof any other personwho may properly be on thesiteuponorinconnection with the Worksorany partthereof, hisservantsoragents, otherthan the Employeror any person employed, engagedor authorisedby him or by any local authority or statutory undertakerexecutingwork solely in pursuanceof itsstatutory rights or obligations.This liability and indemnity is subjectto clause 20.3 and, where clause 22C-1is applicable, excludes loss or damage to any property require thereunder caused by a SpecifiedPeril. -1 Subjectto clause 20.3.2, the reference in clause 20-2to "pr not include the Works, work executed and/or Site Material of issueof the certificate of PracticalCompletionor up to an determinationof the employmentof the Contra determinationis disputed) under clause 27 or28 under clause 27 or 28 or 28A or 22C.4.3, whichev -2 If clause 18 has been operatedthen, in respectof relevantdate, such relevant part shall not be reg executed" forthe purposeof clause 20.3.1.
Injuryor damage
to propecty
exclusionof the Works and Site Materials
20-3
20.3
21
Contractor's insurance personal injuryor death injuryor damageto property
Insurance against injury to persons or
o erty
urytoorthedeathofanyperson the Contractor, and arising out of
r in like mannerto the Contractor but only to the ay be liableto indemnifythe Employer underthe sum stated in the Appendix [sal for anyone occurrence uiredtodoso bythe Employer,theContractorshall Administratorfor inspection by the Employer have sent to the ArchitectkheContract Administrator for erthe relevantpolicy or policies and the premium receipts in taking out or in maintaininginsuranceas provided in clause himself insure against any liabilityor expense which he may
Footnotes
[zlltshouldbenotedthatthecovergranted under public liability policiestakenoutpursuanttoclause21.1.1 may not be ceextensive with the indemnity given to the Employer inclauses20.1and 20.2: for example each claim may besubjecttotheexcessinthe policyand cover may not be available in respectof loss or damage due to gradual pollution. @The Joint Contracts Tribunal Limited 2003
IaalTheContractormay, if hesowishes,insurefora sumgreaterthanthatstatedintheAppendix.
LAWA 98 19/03)
31
Insurance liabilityetc.of Employer
21.2
-1 Whereitisstated intheAppendixthatthe insurancetowhichclause21~2~1 refersmaybe
requiredby the Employer,the Contractor shall, if so instructedby the Architecvthe ContractAdministrator, takeout a policy of insurancein the namesof the Employer and the ContractorIbbl for such amount of indemnityas is stated in the Appendix in respect of any expense, liability, loss, claim or proceedingswhich theEmployer may incur or sustain by reasonof injury or damage to any property causedby collapse, subsidence, heave, vibration, weakening or removal of support or lowering of ground water arising out of or in the course of or byreason of thecarrying out of the Works, excepting injury or damage: for which the Contractor is liable under clause 20.2; attributableto errors or omissions in thedesigning which can reasonably beforeseento be inevitable work to be executed or the manner of its execution; which it is the responsibilitvofthe Employerto ins . . applicable); to the Works and Site Materialsbrought of its executionexcept in so far as any certificate of PracticalCompletion; arising from any consequence (whetherwar be declaredor military or usurped power; directly or indirectly Risks; arising from the Excepted
n \ l
purpose
its entirety at a specific moment in time
,providedthat all pollution or

all be consideredforthe purpose ch incidenttakes place; d by the Employer or in any ect of damagesfor breachof tthat such costs or expensesor damages would have rredto in clause 21.2.1 shall be placedwith insurersto be loyer, and the Contractor shall sendto the Architecthhe Contract posit with the Employerthe policy or policiesand the premium nded by the Contractor to take out and maintainthe insurance se 21.2.1 shall be addedto the ContractSum. tractor defaults in taking out or in maintainingthe Joint Names Policy as in clause 21.2-1 the Employer may himself insure against any risk in respectof e default shall have occurred. ng the provisionsof clauses 20-1,20-2 and 21.1-1, the Contractor shall not be indemnify the Employer orto insure against any personal injury to or the erson or any damage, lossor injury caused to the Worksor Site Materials, work site, or any property, by the effect of an ExceptedRisk.
Footnote
Ibbl Apolicyof insurancetakenoutforthe purposesof clause21~2should nothaveanexpirydateearlierthen the end of the Defects Liability Period.
32
LAWA 98 (9/03)
22
Insuranceof the Works alternative clauses
Insurance of the Works [eel

Clause 22Aorclause 228 or clause22C shall apply whichever clause is statedto apply in the Appendix. In clauses22A, 228,22C and, so far as relevant, in other clauses of the Conditionsthe following phrasesshall havethe meanings given below: All Risks Insurance:lddl insurancewhich provides cover against any physicalloss or damage to work executedand Site Materialsand againstthe any shoring and propping of the Wo such physical loss or damage necessaryto repair, replaceo
1
22.1
Definitions
22.2
propertywhich is defective
-1 wearand tear,
revolution, insurrection, power, confiscation,
lic, municipalor local authority; disappearanceor shortage if such disappearanceor shortage is only revealedwhen an inventory is madeor is not traceableto an identifiableevent;
-3 an Excepted Risk (asdefined in clause 1-31.

a policy of insurancewhich includesthe Employerandthe
Contractor asthe insured and underwhich the insurershave no right of recourseagainst any person named asan insured or, pursuantto clause 22.3, recognisedas an insured thereunder.
IddlThe definitionof'All Risks Insurance'inclause22.2 definesthe risksfor which insuranceis required. Policies issued by insurers are not standardisedandthere will be somevariationinthewaytheinsuranceforthoserisksis expressed. See also Practice Note 22and Guide, PartA. LAWA 98 (9/03) @The Joint Contracts Tribunal Limited 2003
beyond thetermsof paragraph2;thusanexclus~onin terms "This Policy excludes all loss of or damage to the propem insureddue to defective design, plan, specification, materialsor workmanship'' would not be inaccordancewiththetermsof thoseclausesandofthe definitionof 'All Risks Insurance'. Coverwhich goes beyondthetermsoftheexclusion in paragraph 2may be availablethoughnotstandard inall policiestakenoutto meettheobligationinclause22A.22Bor22C~2:and leadinginsurerswhounderwrite'All Risks'coverforthe Works have confirmed that where such improvedcover is being given it will not be withdrawn asaconsequence of the publication of the termsof the definitionin clause 22.2 of 'All Risks Insurance'.
33
' I'
22.2
continued terrorism: any act of any personacting on behalf of or in connection with any organisation with activities directedtowardsthe overthrowing or influencing of any government dejureor de factoby force orviolence. insuranceprovided under a Joint Names Policyto which clauses22A, 228 and 22C referfor physicalloss or damage to work executedand Site Materialsand to an existing structure and/or its contents due to fire or explosioncausedby terrorism.
terrorism cover:
Nominatedand DomesticSubContractors benefit of Joint Names PoliciesSpecifiedPerils
22.3
-1 The Contractorwhere clause 22Aapplies, and the E 22C applies, shall ensure thatthe Joint Names Policy or the Joint Names Policies referredto in clause 228.
ContractAdministrator as an insured U
in respectof loss or damage by the S -1-3refers)togetherwith the responsible; and thatthis e date of issue of the
ornestic Sub-Contractorsshall continue up cate or other document which statesthat
gs
New buildings Contractortotake out and maintaina Joint Names Policyfor All Risks Insurance
- All Risks Insurance of the Works by the Contractor
[CCI
ut and maintain a Joint Names Policyfor All Risks lnsurancefor ned in clause 22.2 lddl [ffl forthe full reinstatementvalueofthe ge, if any, to cover professionalfees stated in the Appendix) and 8-1-31 maintainsuch Joint Names Policy upto and including the date of PracticalCompletion or up to and including the date of ploymentofthe Contractor underclause27or280r28A(whetheror etermination is contested),whichever is the earlier. 'sstatusfor VATpurposes is exempt or partiallyexemptthefull o which this clause refers shall be inclusiveof any VATon the supply of Is referredto in clause 22A-4.3forwhich the Contractor is chargeable by
Footnote
Iffl Insornecasesitrnaynotbepossibleforinsurance to
betakenoutagainstcertainofthe riskscovered bythe Cfefinitionof'AIl Risks Insurance'.This mattershouldbe arranged betweenthe Parties prior to entering into this Contract and eitherthedefinition of'All Risks Insurance' given inclause22.2 amendedortherisks actually
coveredshould rep1acethisdefinition;inthelanercese clause22A.1.22A.3 or 228.1, whichever isapplicable, and other relevant clausesinwhich the definition'All Risks Insurance' is usedshouldbe amendedto include thewordsused to replacethisdefinition.
34
LAWA 98 (9/03)
~~
Single policy insurers approved byEmployer failure by Contractor to insure
22A.2 The Joint Names Policy referredto in clause 22A-1shall be taken outwith insurersapproved by the Employer,andthe Contractorshall send to the Architecthhe Contract Administrator for depositwith the EmployerthatPolicy and the premium receiptthereforand also any relevantendorsementor endorsementsthereof as may be requiredto comply with the obligation to maintainthat Policy set out in clause 22A.1 and the premium receiptstherefor.If the Contractor defaults in taking out or in maintainingthe Joint Names Policyas required by clauses22A.l and 22A.2 the Employermay himself take out and maintaina Joint Names Policy against any risk in respectof which the default shall have occurredand a sum or sums equivalentto the amount paid or payableby him in respectof premiumstherefor may be deducted by him from any moniesdueor to becomedue to the Contractor underthis Contract or such amount may be recoverableby the Employerfrom the Contractor as a debt. 22A.3 -1 If the Contractor independentlyof his obligations under thisCo of insurancewhich provides intereliaAll Risks lnsurancefo defined in clause 22-2forthefuIIreinstatementvalueoft
Useofannual policy maintained bycontractor alternative to use of clause 22A.2
under clause22A.2 to deposit the poli on any occasionthe Employer may (b havesenttothe ArchitecVtheContrac renewaldate, assuppliedby the Cont 22A-3.1 isstated in the Appendix. 22A-3 *2 22A.4 *1 Contractor shall f Administrator an 22A.4 *2 of this Contract. 22A-4 -3 insurers in respectof aclaim underthe Joint Names amaged, remove and dispose of any debris and ompletion of the Works. 22A-4 4 elf and for all Nominatedand Domestic Sub-Contractorswho 2.3, recognised as an insured underthe Joint Names Policy .1 or22A.2or22A.3,shallauthorisetheinsurersto pavall urance in respect of the loss or damage referredto in clause The Employershall pay all such monies (lessonly the amount Employer in respectof professionalfees but not exceedingthe monies so paid excludingany amount includedtherein rtthereof orany Site Materials is he Joint Names Policy referred ering the said loss or damage, the o the ArchitecvtheContract reand locationthereof. eferredto in clause
Lossordamage to works insurance claims Contractor's obligations use of insurance monies
n
r shall not be entitledto any payment in respectof the restoration, repair of such loss or damage and (when required)the removal and ris other than the monies received undertheaforesaid insurance. named in the Joint Names Policy notify the Contractor orthe Employer (the 'Insurers' Notification') that, with effectfrom a date stated by the insurers(the 'Effective Date'), terrorism coverwill cease and will no longer be available, the Contractorshall immediatelyso inform the Employerorthe Employershall immediately so inform the Contractor.
LA WA 98 (9/03)
35
Employer's options
22A.5 -2 The Employer, after receipt of the Insurers' Notificationbut beforethe EffectiveDate, shall give noticetothecontractor in writing:
either
.2
.1 that on and from the Effective Dateclause22A-5.3 shall apply in respect of physical loss or damageto work executedand/or Site Materials due to fire or explosion caused by terrorism; or
-2 .2 that on a date stated by the Employer in his notice (whi of the Insurers' Notificationand on or beforethe Effect the Contractor under this Contract shall be and is deter
relevant, clause 28A-7shall thereupon apply.
the Contractorpursuantto thi Contractor or of any sub-cont have, contributedto the phys
Premiumrate changes terrorismcover
eged bythe Employerto

IS clause refers.
22A.5 -4 -1 lfthe
rorism cover required underthe use 22A.3-1 refers is varied at any adjusted by the net amount of the
Policy to which clause 22A.1 or clause ffective Date the provisions in clause 22A.5-3 Materialssuffer physical loss or damage by
- All Risks Insurance of the Works by the Employer 11x1

New buildings Employertotake outand maintaina Joint Names Policy for All Risks Insurance
for All Risks lnsurancefor to cover professionalfees stated in the Appendix) and such Joint Names Policy up to and including the date
: % @ $ ?
status for VAT purposesis exempt or partially exempt the full thisclause refers shall be inclusiveofany VATon thesupply of materials referredto in clause 22B.3.3for which the Contractor is chargeableby mi loners.
As and when reasonably required by the Contractorto do so the Employer shall produceto the Contractor a copy of the cover certificate, issued by the insurers named in the Joint Names Policyto which clause22B-1refers, which certifies that terrorism cover is being provided under that Policy.
36
LAWA 98 f9/03)
Lossordamagato Works insurance claims Contractofs obligations paymentby Employer
22B.3 -1 If any lossordamageaffecting workexecuted oranypartthereoforanySite Materialsis occasioned by any one or more of the riskscoveredby the Joint Names Policy referred to in clause 228.1 then, upon discoveringthe said loss or damage, the Contractor shall forthwith give notice in writing both to theArchitect/theContract Administrator and to the Employerof the extent, nature and locationthereof. 22B.3 e 2 The occurrence of such loss or damageshall be disregardedin computing any amounts payableto the Contractor under or by virtue of this Contract. 228.3 -3 After any inspection required bythe insurers in respect of aclaim underthe Joint Names Policy referredto in clause228.1 has been completedthe Contractorwith due diligence shall restoresuch work damaged, replaceor repair any such Sit
228.3 -4 The Contractor, for himself and for all Nominatedand Dom insurancein respect of the loss or damage referred 228.3 -5 The restoration, replacementor repair of such 10s removal and disposal of debris shall betreated as instruction ofthe ArchitecthheContractAdminist
Terrorismcover non-availability
ailable, the Employer inform the Employer.
Employers options
228.4 -2 The Employer,after receipt shall give noticeto the Cont
-2 .1
that on and by terrorism;
8.4.3 shall apply in respectof physical aterials due to fire or explosion caused
or
-2 -2 thatonad
loyer in his notice (whichdate shall be after the date on or beforethe EffectiveDate)the employment of ined; and that upon such determinationthe uireanyfurtherpaymentorany releaseorany ontractor shall not apply andthe provisionsof 4and 28A.5 (exceptclause 28A-5.5) and, where relevant, clause
applies then if work executedandlor Site Materialssuffer e due to fire or explosion caused by terrorism the Contractor shall such workdamaged, replaceor repair any such Site Materials maged, remove and disposeof any debris and proceedwith rks; and the restoration,replacementor repair of such loss or (when required)the removal and disposal of debris shall betreatedas if ariation required by an instructionof the ArchitecthheContract r under clause 14.2.The Employer shall not reduceany amount payableto r pursuantto this clause228.4-3by reasonof any act or neglectof the of any sub-contractorwhichmay have, or is allegedby the Employerto ted to the physical loss ordamageto which thisclause refers.
LAWA 98 (9/031
22C
Insurance of existing structures insurance of Works in or extensions to existing structures tee1
Existing structures and contents Specified Perils Employertotake outand maintain Joint Names Policy
22C.1 The Employershall take out and maintaina Joint Names Policy in respectof the existing structures (whichshall include from the relevantdate any relevant part to which clause 18.1-3refers)togetherwith the contentsthereof owned by him or for which he is responsible, for the full cost of reinstatement,repair or replacementof loss or damage due to one or more of the SpecifiedPerilsiggl up to and includingthe date of issue of the certificateof Practical Completion or up to and includingthe date of determinationof the employment of the Contractor under clause 22C.4.3 or 27 or 28or 28A (whetheror notthe validity of that determination is contested),whichever is the earlier. The Contractor, for himself and for all underthe Joint Names Policy r all monies from such insurance in respect of loss or damaget Wherethe Employer's statusfor VATpurposesis exempt or
Terrorismcovar existingstructures andcontents non-availabilityEmployer's options
22C-1 A.1 lfthe insurers named in theclause22C.l Policy longer be available, the Employers Contractor shall immediatelyso inf the Contractor in either As1 -1 that on and from the occurs to the terrorism; or A.1 .2 apply if loss or damage explosioncaused by
that on ad
UA\\
notice (which date shall be after the date ethe Effective Date)the employment of
22C-1 A.2 Wherecla
mployer shall continueto requirethe Works to be isting structures and/orthe contents thereof oyer is responsiblesuffer loss or damage due to fire providedthatthis clause 22C.lA.2 shall not be magecaused by terrorism.
rshall take out and maintaina Joint Names Policyfor All Risks lnsurancefor 8-1-31 maintain such Joint Names Policy upto and including the date of PracticalCompletionor up to and including the date of ploymentof the Contractor under clause 22C.4.3 or 27 or 28 or 28A
lggl In some cases it may not be possible for insurance to betaken out against certain oftha SpecifiedPerilsor the riskscovered bythedefinitionof 'All Risks Insurance'.This matter should be arrangedbetweenthe Partiespriortoentering into thiscontract andeitherthe definitionsofSpecifiedPerilsand/orAll Riskslnsurance given in clauses 1.3and 22.2amended or the risks actuallycovered should replacethe definitions: inthe latter case clause 22C.1 andlor clause22C.2 and other
relevant clauses in which thedafinitions'All Risks Insurance'andor'SpecifiedPerils'areusedshouldbe amended to include the words usedto replacethose definitions.
IhhlSomeEmployene.g.tenantsmay not beableto fulfil thaobligationsinclause22C~l. Ifsoclause22C.l should be amendedaccordingly.
38
L AWA 98 (9/03)
22C-2 continued Where the Employer's statusforVATpurposesis exempt or partiallyexemptthefull reinstatementvaluetowhich thisclause refers shall be inclusiveof any VATon thesupply of the work and materials referredto in clause226-4.4.1 for which the Contractor is chargeable by the Commissioners.
Terrorismcover certificate
22C-3 As and when reasonably required by the Contractor to do so the Employershall produceto
the Contractor a copy of the cover certificates, issuedby the insurersnamed in the Joint Names Policiesto which clauses22C.l and 226.2 refer, which certify that terrorism cover is being provided undereach Policy. 22C.4 If any loss or damage affectingwork executedor any partthereof or occasionedby any one or more of the riskscovered by the Joint Na clause 22C.2 then, upon discoveringthe said loss or da give notice in writing bothto the ArchitecthheContract the extent, nature and locationthereof and 22C.4 -1 the occurrence of such loss or damage shall be dis payabletotheContractorunderor by virtueofthis 22C.4 -2 the Contractor, for himself and for all Nominateda are, pursuantto clause22.3, recognisedas an insu referredto in clause22C-2,shall authorisethe insu insurancein respectof the loss or damage r d to
Loss or damage to Works insurance claims Contractor's obligations payment by Employer
m u
clause 22C. to the Employer; ntractor under this
not thereafter)either Pa
provisionsof clauses28A.4 and 28A.5 22C.4 -4 If no notice of erclause22C.4.3.1, orwherethe relevant -4.3.1 have been invoked and the notice of the insurers in respectof a claim underthe Joint 2 has been completed the Contractorwith amaged, replace or repair any such Site
-4
-1 afteran
acernent or repair of such loss or damageand (when required)
(
Terrorismcover non-availability
named in the Joint Names Policy notifythe Employerorthe Contractor Notification')that, with effect from a date stated bythe insurers (the ate'), terrorism cover will cease and will no longer be available, the Employer inform the Contractororthe Contractor shall immediatelyso of the Insurers' Notificationbut beforethe Effective Date, either
.2
e 1 that on and from the Effective Dateclause22C.5.3shallapply in respectof physical loss or damage to work executedand Site Materialsdue to fire or explosion caused by terrorism; or
L AWA 98 (9/03)
39
22C-5 continued
.2
-2 that on a date stated bythe Employerin his notice(whichdate shall be after the date of the Insurers' Notificationand on or beforethe EffectiveDate)the employmentof the Contractor shall be and is determined; and that upon such determinationthe provisionsof this Contractwhich require any further paymentor any releaseor any further release of Retentionto the Contractorshall not apply and the provisionsof clauses 28AS3,28A.4and 28A.5 (exceptclause 28A-5.5)shall thereuponapply.
22C.5 -3 Where clause 22C.5.2-1 applies then ifwork executedand/or Site Materialssuffer physical loss or damage due to fire or explosion caused by terrorismthe Contractorshall
they were a Variation requiredby an instruction Administrator underclause 14.2.The Employer
22D
Insurance for Employer's loss of liquidated da requiredbythe Employerth ArchitecthheContract Admi insurancei s requiredorinst
actorthat nosuch on and whichwill provide clause 22D.3 in the event of porary buildings, plantand
otthe Employerwishesthecontractorto the Contractori he premium receipttherefor and also any relevant atthe rate stated in the oftime stated in the si h 2 t-3 Pavme
insurance shall be calculatedat the rate referredto in clause 22D.2 bytheapplicationofclause 18.1-4)fortheperiodof any stated in the Appendix, whichever is the less. to take out and maintainthe insurancereferredto in taking out or in the Employermay himself insure
U
Footnote
IiilTheadoptionofanagreedvalueistoavoidany
dispute overtheamount ofthe paymentdue underthe insuranceoncethe policy is issued. lnsurerson receiving a proposalfor the insuranceto which clause 22D refers will normally reservethe right to be satisfied
thatthesumreferredtoinclause22D.2isnotmorethan
agenuine pre-estimateofthedamagaswhich the Employerconsiders, at the time he enters into this Contract. hewillsufferasaresultofanydelay.
40
LA WA 98 (9/03)
22FC Joint Fire Code compliance

Application of clause Compliancewith Joint FireCode
22FC -1 Clause22FC applies where it is stated in the Appendix that the Joint Fire Codeapplies. 22FC *2 -1 The Employershall comply with the Joint Fire Code and ensure such complianceby his servants or agents and by any person employed, engagedor authorised by him upon or in connectionwith the Works or any part thereof other than the Contractor and the personsfor whom the Contractor is responsiblepursuantto clause 22FC.2.2.
-2 -2 The Contractor shall comply with the Joint Fire Code and ensure such compliance
I
connectionwith the Works or any partthereof their servant other personwho may properly be on the site upon o
BreachofJoint FireCodeRemedial Measures
22FC -3 -1
which such RemedialMeasuresare to Completion Date'), the Party receiving
22FC .3 -1 -1 subjectto clause22FC.3obligation ofthecontrac shall ensure that the Re
sures relateto the the Works the Contractor ut by the Remedial ire a Variation to the Works as umberedOocumentsor in an ns as are necessaryto enable iancewith the Remedial Measures in uch limitedworkas are reasonably pliance. The Contractorshall forthwith ministrator of the emergency and of the clause. Such work executed and materialssupplied as if they had been executedand supplied dministrator's instruction requiringa
in 7 days of receiptof a notice specifying RemedialMeasures t's/a ContractAdministrator's instruction under n to carry out orthereafterfails without reasonablecause to proceedwith the RemedialMeasures, then the Employer other personsto carry out those Remedial Measures; and all ection with such employment may be withheld and/or any monies due orto become due to the Contractor or may ontractor by the Employeras a debt.
the Joint Fire Code isamendedhevisedand the Joint FireCodeas underthe Joint Names Policy, applicableto the Works, thecost, if the Contractorwith any amendment(s)/revision(s)to the Joint in the Appendix, be borne either by the Employerand added to the Contract Sum or by the Contractor.
U
LAWA 98 (9/03) @The Joint Contracts Tribunal Limited 2003
41
~~
23
Date of Possession progress to CompletionDate
Date of Possession, completion and postponement

-1 On the Date of Possession possessionof the site shall be given to the Contractor who shall thereupon beginthe Works and regularly and diligently proceedwith the same and shall completethe same on or beforethe CompletionDate. 02 Whereclause 23-1.2is stated in the Appendix to apply the Employer may deferthe giving of possessionfor a period not exceedingsix weeks or such lesser period stated in the Appendix calculatedfrom the Date of Possession.
23.1
23.1
Architect's/ Contract Administrator's instructions postponement
23-2
The ArchitecVTheContractAdministrator may issue instructionsin regardto the postponementof any work to be executed underthe provisionsof
Possessionby Contractor use or occupationby Employer
23.3
.1 For the purposesof the Works insurancesthe Contract0 site and the Works up to and includingthe date Completion, and, subject to clause 18, the Emp possessionofany partor partsofthe Works un
23.3
-2 Notwithstandingthe provisio writing of the Contractor, use the purposesof storage of his certificateof PracticalCompletion theContractorshall give h Employer shall notifythe i whichever may be applica not prejudicethe insurance. shall not be unreasonablydela
-3 Whereclause22A.l or22 to in clause 23.3.2 have
ith the consent in ereof whether for
lauses22C.2 and - 4 e consent of the Contractor in giving the confirmation referred firmation that an additional Employeroftheamount ofthe quire use or occupation under be addedto the Tender Price and the ,with the additional premium
23' -3
Certificateof Architect/Contract Administrator
Works bythe Completion Datethenthe Architectlthe certificateto that effect. Inthe event of a new Completion ch a certificatesuch fixing shall cancelthatcertificate tract Administratorshall issue such further certificateunder clause
Paymentor allowance of liquidated damages
he ContractAdministrator has issueda certificateunder clause 24.1; ployer has informedthe Contractor in writing beforethe date of the Final ate that he may require payment of, or may withhold or deduct, liquidated n 5 days beforethe final date for payment of the
-1 .I
require in writing the Contractor to pay to the Employer liquidated and ascertained damages at the rate stated in the Appendix (or at such lesser rate as may be specified in writing bythe Emp1oyer)fortheperiod betweenthe Completion Date and the date of PracticalCompletion and the Employer may recoverthe same as a debt;
or
42 @The Joint Contracts Tribunal Limited 2003 LAWA 98 (9/03)
24.2
continued
-1 .2 givea notice pursuanttoclause30~1~1~4or30~8~3 to thecontractorthat hewill deduct from monies due to the Contractor liquidatedand ascertaineddamages at the rate stated in the Appendix (orat such lesser rate as may be specified in the notice)forthe period betweenthe Completion Date and the date of Practical Completion.
24.2
.2
If, under clause 25-3.3, the ArchitecthheContract Administrator fixes a later Completion Date, the Employershallpay or repayto the Contractor any amounts recovered, allowed or paid under clause 24-24forthe period up to such later Completion Date.
24.2
-3 Notwithstandingtheissueofanyfurthercertificateofthe Archi Administrator under clause 24-1,any requiremen previouslystated in writing in accordance with clause 24.2. unlesswithdrawn bythe Employer.
25
Interpretationof delay Notice by Contractorof delay to progress
Extension of time [jji
25.1
In clause 25 any referenceto delay, noticeor extensio

notice orfurther extension of time.
the cause or causes of the delay opinion is a Relevant Event. ce has been given under ontractor, the Contractor NominatedSub-Contractor 25.2 .2 In respectof eac with clause 25.2 fied in the noticegiven in accordance able in such notice, or otherwise in
-2 a 2
estimate
expecteddelay in the completion of the Works
and
W n
all aive suc Darticulars and estimate to anv NominatedSub-Contractortowhom tice has been given under'clause25.2.1-2.
h furtherwritten noticesto the Architecthhe Contract py to any NominatedSub-Contractortowhom a copy of een given under clause25-2.1.2, as may be reasonably chitecthheContractAdministrator may reasonablyrequirefor to-datethe particularsand estimate referredto in clauses 25.2.2-1 and uding any materialchange in such particulars or estimate.
FixinnCompletion
Date-
nion of the Architecthhe ContractAdministrator, upon receiptof any notice, and estimate underclauses25.2-1-1,25.2.2 and 25-2.3, events which are stated by the Contractorto be the cause of the delay is a letion ofthe Works is likelyto be delayedthereby beyondthe Completion thearchitecthhe ContractAdministrator shall in writing to the Contractorgive an extensionof time by fixing such later date as the Completion Date as he then estimates
Footnote
Ijjl See clauses38.4.7.39.5.7 and 40.7 (restrictionof fluctuationsor priceadjustmentduring periodwhere Contractoris in default over completion).
LAWA 98 (9/03)
43
25.3
-1 continued to be fair and reasonable.TheArchitect/TheContractAdministratorshaII, in fixing such new Completion Date, state: .1 -3 which of the RelevantEvents he has taken into accountand *1 -4 the extent, if any, to which he has had regardto any instructions issued under clause 14-2which requireasa Variation the omission of any work or obligation andor under clause 14.3 in regardto the expenditure of a provisional sum for definedwork or for PerformanceSpecifiedWork which results intheomission of any such work, and shall, if reasonably practicablehaving regardto the su notice, particulars and estimate, fix such new Completion from receipt of the noticeand of reasonablysufficien where the period betweenreceiptthereof and the CO not laterthan theCompletion Date.
If,in the opinion ofthe Architect/the Contrac notice, particularsand estimate, it is not fair
estimateso notify the Contract0 notice, particulars and estimate Completion Date is less than 12 25.3 *2 Afterthe first exerciseby the clause 25.3-1the Architect/the Date earlierthan that previous earlier Completion Date is fair
25.3 -3
underclausel4 result in the omission of any such work.
-3
han that previouslyfixed if in his opinion the fixing of is fair and reasonablehaving regardto any of the pon reviewinga previous decisionor otherwiseand
-3
Dateearlierthan that previouslvfixed under clause25 if in his of such earlier Completion Date is fair and reasonablehaving issued afterthe last occasion on which the Architecthhe ntract Administratorfixed a new Completion Date underclause14-2whichrequireorsanction asaVariationtheornissionofany workor obligation; and/or under clause 14.3 in regardto the expenditureof a provisional sum for defined rformance SpecifiedWork which result in the omission of any
-3 -3 confirm tothe ContractortheCompletion Date previously fixed.
-4
-1 the Contractor shall useconstantlyhis bestendeavoursto prevent delay in the progressof the Works, howsoevercaused,and to preventthe completion of the Works being delayedor further delayed beyondthe Completion Date;
U W A 98 (9/03)
25-3
continued
-4
e 2 the Contractorshall do all that may reasonably be required to the satisfactionof the Architecthhe ContractAdministratorto proceedwith the Works.
25.3
-5 The Architecnhe ContractAdministrator shall notify in writing to every Nominated Sub-Contractor each decision of the Architecthhe ContractAdministrator under clause 25.3fixing a Completion Date. .6
25.3 25.4 25.4 25.4 25.4 25.4
No decision of the ArchitecthheContractAdministrator under clause25-3shall fix a Completion Date earlier than the Datefor Completionstated in the Appendix.
RelevantEvents
The following are the RelevantEvents referredto in clause 25: .1 force majeure; -2 exceptionally adverseweather conditions;
-3 loss or damage occasioned by anyone or more

-4 civil commotion, local trades employed upon the Works or manufactureor transportationof .5 compliancewith the ArchitectWtheC
25.4
U w o
.5
-1 under clauses 2.3,2.4-1,14.2,14-3 ( ce ompli e with an ArchitectWa Contract Administrators instructionfor the p nditu of a pr sional sum for defined work or of a provisionalsum for oro r ance Sp kl, 23-2,34,35 or36; or
.2
a5
in regard to the opening
covered up orthe testing of clause8.3 (including making the inspection or test with this Contract; failure of the Architect/ ministratorto comply with clause 5.4-2; -Contractorsor NominatedSuppliers which the steps to avoidor reduce; ng part ofthis Contract bythe Employer himself or ise engaged bythe Employeras referredto in which the Employer has agreed
25.4
-6 -1 where an -6 -2 failureoft
25.4 25.4
-7 delayonthep
.8
.1 theexec
25.4
fia9
heex cise afterth ase Date bythe United Kingdom Governmentof any statutory lyaffects theexecution ofthe Works byrestrictingthe availabilityor e of la ur which is essentialto the proper carrying out of the Works or preventingthe Con ctor rom, or delaying the Contractor in, securingsuch goods or materials or such fuel or ner y as are essentialto the proper carryingout of the Works; inabilityfor reasonsbeyond his control and which he could not to secure such labour as is essential to
reasons beyond hiscontrol and which hecould not the Base Dateto secure such goods or materials as are essential to the proper carrying out of the Works; the carrying out by a local authority or statutory undertakerof work in pursuanceof its statutory obligations in relationtothe Works orthe failure to carry out such work;
LAWA 98 (9/03)
45
25.4
-12 failureoftheEmployertogivein duetimeingresstooregressfromthesiteofthe Works orany partthereofthroughoroverany land, buildings,wayorpassageadjoiningor connectedwith the site and in the possession and control of the Employer, in accordancewith the Contract Bills and/or the Contract Drawings, after receipt by the ArchitecthhecontractAdministratorof such notice, if any, as the Contractoris required to give, or failure of the Employer to give such ingressor egress as othetwiseagreed betweenthe ArchitectltheContract Administratorand the Contractor; -13 by reason of the executionof work whose quantitywasnot reasonablyaccurately forecast in the Contract Bills; -14 where clause 23.1-2is stated inthe Appendixto apply, the def giving possessionof the site underclause23-1.2;
-15 delay which the Contractor has taken all practicable
25.4
25.4
25.4
upon a change in the StatutoryRequirements after t some alterationor modificationto any Performance
25.4
-16 the use orthreat ofterrorism and/ortheactivityofn tt such useorthreat; -17 compliance or non-compliance bythe Employ -18 delayarisingfroma suspension bythe
-19 save as providedforin clause
a&ritie\s\pl
dealingwith
25.4
25-4
ce of his obligations
25.4
26
Matters materially affecting regular progress of the Works -direct
26-1
If the Contractor ma
Architecahe ContractAdministrator er provision in this Contractdue to deferment -1-2 whereclause23.1.2 isstatedin the ted by anyone or more of the matters referredto in rchitecthheContract Administrator is of the opinion
lossandtor
expense
tlthecontract Administratorfrom time totime thereaftershall

e Quantity Surveyortoascertain, the amount of such lossand/or
cation shall be made as soon as it has become, or should me, apparentto him thatthe regular progressoftheWorksorof s been orwas likelyto be affectedas aforesaid; and
the Contract Administrator tocomply with clause 5-4.1; -1 .2 failure of the ArchitecthheContractAdministratorto complywith clause 5.402;
46
LAWA 98 (9/03)
26.2
.2
the opening up for inspectionof anyworkcovered uporthetesting ofany ofthework, materials or goods in accordancewith clause8.3 (includingmakinggood in consequenceof such opening upor testing), unlessthe inspection ortest showed that the work, materialsor goods were not in accordance with this Contract;
26-2 26.2
-3 any such discrepancy or divergence as is referredto in clause 2.3; .4 -1 the execution of work not forming part of this Contract by the Employer himself or by personsemployedorothewise engagedbythe Employer as referredto in clause 29 orthefailuretoexecutesuch work;
-4 -2 the supply by the Employerof materialsandgoods which th to provide forthe Worksorthe failuresotosupply;
26.2 26.2
-5 Architect's/Contract Administrator's instructions under c l the postponementof any work to be executedunderthe p
-6 failure of the Employerto gi or any partthereofthrough connectedwith the site and in the possession accordance with the Contract Bills and/orthe ArchitecthheContra to give, or failure oft betweenthe Archite
a 7
26-2
Architect's/Contract underclause14-2requiring a underclause14.3 in regard t instructionsto which claus provisionalsum for defin Work);
26.2 26.2
.8 theexecution of Contract Bills;
accuratelyforecastin the loyerwith clause6A.1; ance of his obligations underthiscontract -1-4providedthe suspension was not frivolous or
.9
complianceor n
wascausedorcontributed to by any default, tractor or his servants, agents or sub-contractors.

Relevanceof certainextensions of Completion Date
scertainmentunder clause 26.1 of loss and/or istratorshall state in writing to the Contractorwhat
NominatedSub
n properly made by a Nominated SC/C shall passto the Architecthhe ministrator a copy of that written application. If and as soon as the Architect/ ministrator is of the opinionthat the loss and/orexpenseto which the 1 refers has been incurred or is likely to be incurreddue to any giving of possessionwhereclause23-1.2is stated in the Appendixto tworksorof any partthereof has o in clause 4-38.1of Conditions NSC/C and as set out in the applicationof the NominatedSub-Contractorthen the ArchitecthheContractAdministrator shall himself ascertain, or shall instruct the Quantity Surveyorto ascertain, the amount of loss and/or expense to which the said clause 4-38.1refers.
LA WA 98 (9B3)
47
26.4
-2 If andtotheextentthat it is necessaryfortheascertainmentof such lossand/orexpense the ArchitecthheContractAdministrator shall state in writing to the Contractor with a copy to the NominatedSub-Contractorconcernedwhat was the length of the revision of the periodor periodsforcompletion of the sub-contract works or of any part thereof to which he gave consent in respectof the Relevant Event or Eventsset out in clauses 2.6.5.1 (sofar as that clause refersto clauses2.3,14.2,14.3 and 23.2 of the Main Contract Conditions), 2.6.5-2,2-6.6,2-6.8,2.6.12and 2.6.1 5 of ConditionsNSC/C. Any amount from time to time ascertained underclause26shall be included in the calculation of the Ascertained FinalSum.
Amounts ascertained included in Ascertained Final Sum
26.5
ResewationI of rightsand rernediesof Contractor
26.6
The provisionsof clause26are without prejudiceto any Contractor may possess.
27
Notices under clause 27
Determination by Employer
special delivery or recordeddelivery contrary, bedeemedto have been re Saturday and Sunday and Public Hol
Defaultby Contractor
27.2
.I
If, beforethe date of PracticalCompl or moreofthefollowing respectsuspendsthe carrying out of
-1 -1 without reasonablecause the Works; or .1 -2 hefailsto
ing him to removeany work, materials ct and by such refusal or neglectthe

-1 .4
hefails
.I
.5 hefails
nistrator may give to the Contractora noticespecifying ified default or defaults). Employer may on, orwithin lodaysfrom, theexpiry ofthat the Contractordeterminethe employment of the
<*U r
th
.4
ontractor ends the specifieddefault or defaults, or does not give the further notice referredto in clause 27.2.2
repeats a specifieddefault (whetherpreviously repeatedor not)then, time after such repetition, the Employer may by noticeto the Contractordeterminethe employment of the Contractor underthis Contract. Such determination shall take effect on the date of receiptof such notice. A notice of determinationunder clause 27.2-2 or 27.2-3 shall not be given unreasonably orvexatiously.
48
LAWA 98 i9/03)
Insolvencyof Contractor
27.3
-1 Ifthecontractor makesa compositionor arrangementwith his creditors, or becomes bankrupt, or being a company, makes a proposalfor avoluntary arrangementfor a composition of debts or scheme of arrangementto be approved in accordance with the CompaniesAct 1985or the InsolvencyAct 1986asthecase may beor any amendmentor re-enactmentthereof, or has a provisional liquidator appointed, or has a winding-up order made, or passesa resolutionfor voluntary winding-up amalgamationor reconstruction),or underthe InsolvencyAct 1986orany administrator or an administrative then:
27.3
-2 the Contractor shall immediatelyinfo
v/q I
es Act 1985or the re-enactmentthereof;
27.3
.3 where a provisional liquidator or order is made or the Contract0
may at any time, unless an agreement notice to the Contractor determine the t and such determinationshall take 27.4 The Employershal any other contract, personanygiftorc ine the employment of the Contractor, under this or haveofferedorgiven oragreedtogivetoany ind as an inducement or rewardfor doing or
Corruption
ntractwith the EmployertheContractororany person his behalf shall havecommitted an offence underthe
e Local GovernmentAct 1972or any amendment or re-enactmentthereof.
lnsolvencyof Contractor
27.5.4are onlyapplicablewhereclause 27.3.4 applies. when, under clause 27.3-4,the Employercould first give noticeto employmentof the Contractor, the Employer, subjectto clause 27-5.3, und by any provisionsof this Contractto make any further payment
Footnote
lkklSee JCTPractice Note24:aftarcertaininsolvency eventsan InsolvencyPractitioner actsforthe Contractor. @The Joint Contracts Tribunal Limited 2003
LA WA 98 19/03]
49
27.5
-2 Clause27.5-1shall apply until either
.2 -1 the Employermakesan agreement (a '27.5-2.1 agreement')with the Contractoron the continuationor novationor conditionalnovationof this Contract, in which case this Contract shall be subjectto the terms set out in the 27.5.2.1 agreement,
or
.2
-2 the Employerdeterminesthe employmentof the Contractorunder this Contractin accordancewithclause 27.3.4, in which case the provisio shall apply.
27.5
-3 Notwithstandingclause27.5.1, in the period beforeeith

or the Employerunderclause 27-3.4determinesthe em Employer and the Contractormay make an interimarra such interim arrangement.
reasonable measures to ensure th delay the taking of the a cost of taking such mea underthisContract (inc
omeduetotheContractor
e 27.5-3, refers)or may recover

Consequencesof determination underclauses27.2 1021.4
27.6
Inthe event of the
the Contractor under clause 27.2-2, ons to carry out and completethe Works
ontractor the consentof the owner thereof to such use
the date of determination, assign to the Employerwithout efit of any agreement forthe supply of materialsor goods and/or
effect as a creditors'voluntary liquidation,the Employer may pay any supplier or sub-contractorforany materialsor goods deliveredor works executedforthe purposesofthisContractbeforeorafterthedateof determinationin sofarasthe pricethereof has not already been paid by the Contractor. Payments made under this clause 27.6-2-2may be deducted from any sum due or to becomedue to the Contractoror may be recoverable from the Contractorby the Employer as a debt;
50
@The Joint Contracts Tribune1 Limited 2003
LAWA 98 (9/03)
27.6
-3 the Contractorshall, when requiredinwriting bythe ArchitecthheContract

Administrator so to do (butnot before), removefrom the Works any temporary buildings, plant, tools, equipment, goods and materialsbelongingto him, and the Contractorshall have removedbytheir owner any temporary buildings, plant, tools, equipment, goods and materialsnot ownedby him. If within a reasonabletime after such requirement has been madethe Contractorhas not compliedtherewith in respect oftemporary buildings, plant, tools, equipment, goods and materialsbelongingto him, then the Employermay (butwithout being responsiblefor any lossor damage) remove and sell any such propertyof the Contractor, holdingthe proceeds less all costs incurred to the credit of thecontractor.
accrued 28days or more beforethe date couldfirst give notice to determinethe e
17.2and/orclause17.3ofthe of the Employer, notto requir good)then within a reasonab referredto in clause 27-6.5s ha Employeror in a certificateissu
ntract Administrator. oyer includingthose
27-6
-5
-1 The amount of expenses p
-2 the amount o
able forthe Works in accordancewith 27.6
-6
the Employertothe Contractoras thecase may be.

Employerdecides not tocomplete the Works
27.7
-1
rminationof the employmentof the Contractornot ficationthe Employershall send to the Contractora statementof rk properly executed at the date of determinationof the
of any expenses properly incurredbythe Employerandof any direct causedto the Employeras a resultof the determination. to the ContractorunderthisContract, or is lessthan the amount stated shall be a debt payable by the Contractorto the Employeror bythe Employerto the Contractoras the case may be. If after the expiry of the 6 month period referredto in clause 27-74the Employerhas not begun to operate the provisionsof clause 27-6-1 and has not given a written notification pursuantto clause 27.74 the Contractormay requireby notice in writing to the Employerthat he states whether clauses 27.6.1 to 27.6-6are to apply and, if not to apply, requirethat a statement of account pursuanttoclause 27-7-1 be preparedby the Employerfor submissionto the Contractor.
LAWA 98 (9/03)
51
Otherrightsand remedies
27-8
The provisionsof clauses 27.2 to 27.7 are without prejudiceto any other rightsand remedies which the Employer may possess.
28
Notices under
Determination by Contractor
28.1
clause 28
Any noticeor further noticeto which clauses 28.2-1,28.2.2,28.2-3,28-2.4and28.3 refer shall be in writing and given by actual delivery or by special delivery or recordeddelivery. If sent by special delivery or recordeddeliverythe noticeor further noticeshall, subjectto proof to thecontrary, be deemed to have been received 48 hoursafter the date of posting(excluding Saturday and Sunday and Public Holidays).
-1 IftheEmployershallmakedefaultinany oneor moreoft
-1
Defaultby Employer suspensionof uncompleted works
28.2
.1
he does not pay bythe final date for pa Contractorin respect of any certificate theVATAgreement;or
.1
-2 he interfereswith or obstructsthe issue of
-1 -3 he fails to complywith the provisions

-1
.4
he fails pursuantto the Conditionsto Regulations,
ents of the CDM g the default or defaults (the
the Contractormay give to the Em 'specified default or defaults').

28.2 -2 If, beforethe date of Practical the wholeofthe uncom -2 .1 .1 wher
s been provided,failureofthe dministratorto complywith clause 5.4.2; r's instructionsissued underclause 2.3,14.2 or gligence or defaultof the Contractor, his oyed orengaged upon or in connection wants or agents other than a Nominated er or any personemployedor engaged by the utionofwork notforming part ofthiscontract bythe Employer sons employedor otherwiseengaged by the Employeras referred thefailure toexecutesuchworkordelay in thesupply bythe erials and goods which the Employer has agreed to supply forthe failure so to supply; or
-1 -2 failureofth
orks or t
of the Employertogive in due time ingress to or egressfrom the site of the or any partthereofthroughor over any land, buildings, way or passage with the site and in the possessionand control of the in accordancewith the relevantContract Documents, after receipt by the Contract Administratorof such notice, if any, as the Contractor is orfailureofthe Employertogivesuchingressoregressas betweenthe ArchitecthheContractAdministrator and the the Contractormay give to the Employeranoticespecifyingthe event or events (the 'specified suspension event or events').
52
LAWA 98 (9/031
28.2
-3 If
the Employercontinuesaspecified default, or a specifiedsuspensionevent is continued
for 14 days from receipt of the notice under clause28.2.1 or 28-2.2then the Contractor may on, or within 10daysfrom, the expiry of that 14daysby a further noticeto the Employer determinethe employment of the Contractor underthis Contract. Such determinationshall take effect on the date of receiptof such further notice.
28.2
a 4
If
and
the Employer ends the specified default or defaults, or the specifiedsuspensionevent oreventscease, or
the Employerrepeats(whetherpreviously re
a specifiedsuspension event is rep
repeatedor not), wherebythe regu materiallyaffected, then, upon orwithin a reasona noticeto the Employer determ Such determinationshall take
28.2 28.3
-5 A notice of determination un
-1 If the Employer1111
hall not begiven unreasonably
Insolvencyof Employer
makes a compositi
is creditors, or becomesbankrupt, or,
rangementfor a composition of debts or scheme ccordance with the CompaniesAct 1985orthe may be or any amendmentor re-enactmentthereof,
luntary winding-up (exceptforthe purposesof InsolvencyAct 1986or any amendment or re-enactmentthereof has an ator or an administrative receiver appointed
immediatelyinform the Contractorin writing if he has made a angement with his creditors, or, being a company, has made a InsolvencyAct 1986oranyamendmentor re-enactmentthereofas thecase may be;
I
Footnote 1111See JCTPracticeNote 2 4 after certain insolvency
events an InsolvencyPractitioneractsfor the Employer.
LAWA 98 (9/D3)
28.3
-3 the Contractor may by notice to the Employer determine the employmentof the Contractor underthisContract. Such determinationshall take effect on the date of receipt of such notice. Providedthat afterthe occurrence of any of the events set out in clause 28-3-1and beforethe taking effect of any noticeof determinationof his employment issued by the Contractor pursuant to clause 28-3-3the obligationof the Contractor to carry out and complete the Works in compliance with clause 2.1 shall be suspended.
Consequencesof determination under cleuse 28.2 or 28.3
28.4
Inthe event of the determinationof the employment of the Contractor under clause 28.2.3, 28.2.4 or 28.3.3 and so long as that employmenthas not been reinstated, the provisionsof clauses28.4.1,28-4.2and 28.4.3 shall apply; such applicationshall be without prejudiceto clause20whichmay accrue either beforetheContractororan servants or agents or others employed on or enga
same. Subjecttoclauses 28-4.2and 28.4-3the provis payment or release or further release of Retentionto precautions as will prevent injury, d beforethe date of determinationhe
28.4
.2 Within 28 days of the determinati shall payto thecontractorthe determinationof the em
he ContractortheEmployer re the date of determinationof
5 which shall includeas relevant
uted at the date of determinationof the value to be ascertained in accordancewith the
ost of removal pursuant to clause 28.4.1; and
terials or goods (includingSite Materials)properlyorderedforthe ich the Contractor shall have paidor for which the Contractor is legally
ing into account amounts previouslypaidto the Contractor underthisContract loyer shall pay to the Contractor the amount properly due in respect of this within 28 days of its submission by the Contractor to the Employer butwithout ction of Retention. s of clauses 28.2 to 28-4are without prejudice to any other rightsand remedies
54
LAWA 98 (9/03)
28A
Groundsfor determinationof the employment ofthecontractor
Determination by Employer or Contractor

If, beforethe date of PracticalCompletion, the carrying out of the whole or substantially the whole of the uncompletedWorks is suspendedfor the relevantcontinuous period of the length stated in the Appendix by reason of one or more of the following events: .1 force majeure; or
28A.1 .1
.1
.1
-2 loss or damage to the Works occasionedby any one or more of the Specified Perils; or
-1 -3 civi1commotion;or
.1
.4
Architect's/Contract Administrator's instructions 23.2 which have been issuedas a result of the neg authority or statutory undertaker executing work ob1igations;or
ry
-1 -5 hostilities involving the United Kingdom (whet
.1
-6 terrorist activity
aid notice; and the
28A.l -2 The Contractorsh
soragentsotherthan the
y in pursuanceof its statutory obligations.
se 28A-1-1 shall not begiven unreasonablyor he Contractor under clause28A.1.1 the yfurther paymentor any release or further
Consequences of determination under clause 28A.l.l -clauses 28A.3 to 28A.6
reasonabledispatch and in such mannerandwith such ite all his temporary buildings, plant, tools, equipment, goods Materials)and shall ensurethat his sub-contractorsdo the pay to the Contractorone half ofthe Retentiondeducted by the Employer
hall, not later than 2 months after the date of the determinationof the tion of the account to which this clause refers. Subjectto due discharge by the tor of this obligationthe Employershall with reasonabledispatch preparean account setting outthe sum of the amounts referredto in clauses28A.5-1to 28Ae5-4and, if clause28A.6 applies, clause 28A.5-5, which shall include as relevantamounts in respectof all NominatedSub-Contractors:
LAWA 98 /9/03)
55
continued
pay to the Contractor in additionto the amount not properlypaidsimple interest thereonfor the perioduntil such paymentis made. Paymentof such simple interest shall be treated as a debt due to the Contractor bythe Employer.Therate of interest payableshallbefivepercent(5%)overtheBaseRateofthe Bankof Englandwhich is current at the date the paymentby the Employer becameoverdue. Any payment of simple interest underthisclause30-1.1.1 shall not in any circumstances be construedas a waiver by the Contractorof his right to proper paymentof the principalamount due from the Employer to the Contractorin accordancewith, and within the time stated in, the Conditionsor of the rightsof the Contractor in regardto suspension of the performance of his obligations underthis Employer pursuanttoclause 30-1.4 or to determinationof h pursuanttothedefaultreferredto in clause28-2.1.1.
against any amountso due under an lnteri Retention is includedin that InterimCertifi
Not laterthan5 days after the date o proposedto be made, tow whichthat amount iscalcu relates and the basis on the amountdue pursuant to the Contractorwhich deducted from that due /or deductionand the n noticepursuanttoclause30-1.1-3 aythe Contractortheamountdue
Interim valuations
e by the Quantity Surveyor wheneverthe Architect/ sidersthem to be necessaryforthepurpose of statedas due in an InterimCertificate. [rnrnl
Application by Contractor amount of gross valuation
igation of the Architect/theContract Administratorto use30-1.1.1,thecontractor, not laterthan7 cate, may submit to the QuantitySurveyor sets out what the Contractor considersto bethe amount of the uant to clause 30.2. The Contractor shall includewith his Contractor by a NominatedSub-Contractor -Contractor considersto be the amount of valuationpursuantto clause 4.17 of ConditionsNSC/C. Ifthe Contractor uch an applicationthe QuantitySurveyor shall make an interimvaluation. entthat the Quantity Surveyordisagrees with the grossvaluationinthe or's applicationand/or in a Nominated Sub-Contractor's applicationthe Surveyoratthesametimeasmaking thevaluationshallsubmittothe or a statement, which shall be in similar detailto that given in the on, which identifiessuch disagreement. on the dates providedfor in the Appendix and which dates shall continue up to the date of Practical Completionor to within one month thereafter.Thereafter InterimCertificates shall be issued as and when further amounts are ascertained as payableto the Contractor from the Employerand after the expiration of the Defects Liability Period named in the Appendix or upon the issue of the Certificate
Footnote
[rnrnlWhere formula adjustment under clause40 applies, clause 40.2.1 provides:'Interim valuations shall be made before the issueof each Interim Certificateand @The Joint Contracts Tribunal Limited 2003
accordinglythewords"wheneverthe ArchitecVthe ContractAdministratorconsidersthem to be necessary" shall be deemed to have been deleted inclause301~2~1.' 57
LA WA 98 (9/031
30.1
.3 continued
of Completion of MakingGood Defects (whicheveris the later) provided always that the ArchitecVtheContractAdministrator shall not be requiredto issue an Interim Certificate within one calendarmonth of having issueda previous lnterim Certificate.
flightof suspensionof obligationsby Contractor
30.1
.4
Without prejudiceto any other rights and remedieswhich the Contractor may possess, if the Employer shall, subject to any notice issued pursuantto clause30-1.1.4,fail to pay thecontractor in full (includingany VATdue pursuanttotheVATAgreement) bythe final date for payment as required bythe Conditionsand suchfailure shall continue for7 days afterthe Contractor has given to the Employer,with a copy to the Architecthhe
of hisobligations underthisContracttothe suspension shall not be treated as a suspen
Ascertainrnentof amountsdue in Interim Certificates
30.2 The amount stated as due in an Interim Certificate,s

Partiesas to stage payments, shall be the grossvalu any amountwhich may be deducted and reta 30.4 (inthe Conditionscalledthe Retention) the total amount stated as due in Inter Conditions. lessthetotal oftheamounts referre date not more than 7 days beforet 30.2 -1 Thereshall be includedth in clauses30.2-Iand 30.2.2 lied up to and including a ect to Retention:
s provided in clause
alue underclause40;
-1 -2
tbetot
oods deliveredto or adjacentto the Works for ontractor but not so incorporated, provided that the oods shall only be includedas and from such times as nd not prematurely so delivered and are adequately
includedin the Contract Bills, or, in the cases wherethe nomination arises an instructionas to the expenditure of a provisionalsum, at rates related to, or, if none, at reasonablerates.
II be includedthe following which are not subject to Retention:
amounts to be includedin Interim Certificates in accordancewith clause 3 as a result of payments made or costs incurredby the Contractor under clauses 6-2,8.3, 9-2and21.2-3;
-2 -2 any amounts ascertained under clause 26.1 or 34.3 or in respectof any restoration, replacementor repair of loss or damage and removal and disposal of debris which in clauses 228-3.5 and 22C.4-4.2 are treated as if they were a Variation;
-2 -3 anyamounttowhichclause35~17 refers;
58
U W A 98 19/03)
30.2
continued
-2 -4 any amount payableto the Contractor under clause39 if applicable;
-2
a 5
the amounts referredto in clause 4.17-2 of Conditions NSClC in respect of each NominatedSub-Contractor.
30.2
-3 Thereshall be deductedthe following which are not subject to Retention:

-3 .I
anyamountdeductibleunderclause7 or8.4-2or 17.2or 17.3oranyamount allowable bythe Contractortothe Employer under clause 39, if applicable;
-3 -2 any amount referredto in clause 4-17-3of Conditions NSC/C NominatedSub-Contractor.

Off-site materiels orgoods the 'listeditems'
30.3 The materials or goods or items pre-fabricatedfor inclusion in t

Certificateshall includethe value of any listed items be the Works providedthat the following conditions have
30.3
.I
thecontractor has provided proofthatthe property in uni uniquely identified listedit stated in the Appendix, has recital a bond on other terms i
30.3
-2 thecontractor in respectof lis the Arc hitect
quely identified has provided listed items isvested in the
etyapproved bythe Employera bond in
30.3 -3 theli
sets bylettersorfiguresorby
) J.2
-4
their destination as the Works;
the Contractor has providedthe Employerwith reasonable proof that the listed items are insuredagainst lossor damage fortheirfull value under a policy of insuranceprotecting the interestsofthe Employerand the Contractor in respect of the Specified Perils, during the period commencingwith the transfer of property in the listed itemsto the Contractor until they are deliveredto, or adjacentto, the Works.
LAWA 98 i9/03)
59
~~
~~
Retention -rules for ascertainment
30-4
-1 The Retentionwhich the Employer may deduct and retainas referredto in clause30.2 shall be such percentageof the total amount included underclause30.2-1 in any Interim Certificateas arises from the operation of the following rules: -1 .I the percentage(inthe Conditionsand Appendix called the Retention Percentage) deductible under clause 30.4.1.2 shall be 5 per cent (unlessa lower rate shall have been agreed betweenthe Parties and specifiedin the Appendix as the Retention Percentage); and the percentagedeductible underclause30~4~1~3 shall beone half of the RetentionPercentage; [nnl
to01 the RetentionPercentage may be deductedfrom so much of the said total amountas relatesto:
-1 -2
work which has not reached PracticalCompletion 18.1. I or 35.16); and amountsin respectofthevalueofma 30.2.1.2,30.2.1-3and 30.2.1.4 (sofara goods as referredto in clause 4.17.1 o -1 -3 half the Retention Percentage may b amount as relatesto work which has rea clause 17.1,18.1.1 or35.16) but in respec Making Good Defects underclause17.4 InterimCertificate under clause 35.
1001
mw
use 18.1-2oran
30.4
-2 The Retentiondeductedfrom the va NominatedSub-Contractor, andf
the Contractor or any sand goods intendedfor
theNominated Sub-Contr
Rules on treatment of Retention
30.5 30.5 30.5
The Retentionshal -1 the Employer

.2 .I atthe
ciary as trustee for the Contractor and for e the Architectlthe ContractAdministrator shall rveyorto prepare, a statement specifying the minated Sub-Contractretentionfor each deducted in arriving atthe amount stated as due in such tract Administrator to the
r exercisesthe right to withhold and/or deduct referredto in clause Retentionhe shall inform the Contractorof the amount of that ract retention of any NominatedSub-Contractorby referencetothe latest
Inn1Where the Employeratthe tender stage estimates thelenderpriceto bef500,OOOorover. the Retention Percentage should not be morethan 3 percent.
1001 By theoperation ofclauses30~4~1~2 and30.4.13 the Contractorwill have released to him by the Employer upon payment of the nextlnterim Certificateafter PracticalCompletion of thewhole or part of the Works approximately one half of the Retentionon the whole or the appropriate part and upon payment of the next InterimCertificate after the expirationof the Defects
60
Liability Period namedintheAppendix.orafterthe issue of the Certificate of Completion of MakingGood Defects, whichever is the later, the balance of the Retentiononthewholeortheappropriatepart.When Retentionis so included in InterimCertificatesit becomesa sum dueto theContractorandtherefore subjecttotherightsoftheEmployertodeduct therefrom in accordancewiththe rightsof theEmployer
sotodeductassetoutintheConditions.
I o o l l Notused. LAWA 98 (9/03)
Ascertained Final Sum documents from Contractor final Valuations underclause14
30.6
-1 -1 Not later than 6 months after PracticalCompletionof the Works the Contractorshall provide the ArchitecVtheContractAdministrator, or, if so instructedby the Architecthhe ContractAdministrator, the Quantity Surveyor, with all documents necessaryfor the purposesof the computations required by the Conditions including all documents relatingto the accounts of NominatedSub-Contractorsand NominatedSuppliers. a 1 -2 Not later than 3 months after receipt by the ArchitecVtheContract Administrator or bytheQuantity Surveyorofthedocuments referredto in clause30.6.1.1 -2 -1 the ArchitecthheContractAdministrator, or, if the ArchitecthheContract Administrator has so instructed,the Quantity Su previouslyascertained)any loss and/or expense U 34.3, and
-2 .2
theQuantity Surveyorshall prepareastatemento Ascertained FinalSum as referredto inclause30. whichclause30~6~1~2~1 applies
ascertainmentto which clause 30.6.1.2-1 refe compliancewith clause30.6.1.2.2tothe Cont therefrom to each NominatedSub-Contract0
ltemsincludedin the Ascertained Final Sum
30.6
.2 The Ascertained Final Sum shall be the a

.2 -1 the amount of the valuation of th clause30.6.1.2; ement referredto in ersumsfor all Nominated all relevant provisionsof
te in accordance with the terms of
-2 -2 the amounts of the nomi Sub-Contractorsas final
-2 .3
the tendersu
oyer)foranyworkforwhich a ause7or8.4.2or 17-2or17-3orany er in accordance with the nomination inistrator in respectof materialsor uppliers; such amounts shall includethe discount in clause36butshall excludeanyvalueaddedtax being treated, as inputtax bythe Contractor; -2 -5 th from an instruction as to the expenditureof a provisionalsum at
.2
-6
b y a m w p a i d o r payableby the Employertothe Contractor as a resultof

incurredbythecontractor underclauses6-2,8.3,9-2and under clause 26.1 or 34.3; id or payableto or allowed or allowable bythe Contractor under whichever is applicable; ue to the Employer under clause 22A.2,35.18.1.2 or 35-24-6; r amount which is required by this Contractto be taken into account in the calculationof the AscertainedFinal Sum.
Certificate -final ascertainment of nominatedsubcontractsums
soon as is practicable but not less than 28 days beforethe date of issue of the Final ertificate referredto in clause30.8 and notwithstandingthat a period of one month may not ssue of the previous InterimCertificate, the ArchitecthheContract Administratorshall issuean InterimCertificatethe grossvaluationforwhich shall include the amountsofthesub-contract sumsforall NominatedSub-Contractsasfinallyadjusted or ascertained under all relevant provisions of ConditionsNSC/C.
LA WA 98 (9/03)
61
Issueof Final Certificate
30.8
-1 The Architecuhe ContractAdministrator shall issuethe FinalCertificate(andinform each NominatedSub-Contractorof the date of its issue)not laterthan 2 months after whicheverofthefollowingoccurs last: the end of the Defects Liability Period: the date of issueof the Certificateof Completionof Making GoodDefectsunder clause 17.4; the date on which the ArchitectCthe ContractAdministrator sent a copy to the Contractorof anyascertainmenttowhich clause30.6-1.2-1refers and ofthe statementpreparedin compliancewith clause30-6.1-2.2. The FinalCertificateshall state:
. I the sum of the amounts alreadystatedas due in
-2 the AscertainedFinalSum calculatedin .3 to whatthe amount relates and the basis on beencalculated ich the As rtain
F' al Sum has
andthedifference(ifany1betweenthetwosu
dicetothe rightsof
thecontractor from the Employ may be.
30.8
-2 Not later than 5 days aft a written noticeto the C the Contractorfrom the
ificatethe Employer shall give
30.8
*3 eforethefinal date for payment of the the Contractor which shall specify any from any balancedue to the olding and/or deductionand the
30.8
-4
ive a written notice pursuant toclause 30.8.2 and/or Ipay the Contractor the balance stated as due to the ntractorfails properly to pay the said balance, or any part iod until such payment is made. The rate of interest payableshall be vertheBaseRateofthe BankofEnglandwhich iscurrentatthedate Employeror by the Contractor as the case may be became overdue. ent of simple interest underthis clause 30.8shall not in any circumstancesbe d as a waiver by the Contractor or by the Employer as the case may be of his roper payment of the aforesaidbalance due from the Employerto the or or from the Contractorto the Employer in accordancewith this clause 30-8. payment of the balance pursuantto clause 30.8.3 and of any interest clause30.8.5 shall be treated as a debt due to the Contractor by the Employer ployer by the Contractor as the case may be. in clauses 30-9.2 and 30.9-3 (andsave in respectof fraud), the Final Certificateshall have effect in any proceedingsunder or arising out of or in connection with this Contractwhether by adjudicationunder article 5 or by arbitration under article 7A or by legal proceedingsunder article 7B as
3 0 . 8
-5
62
LAWA 98 (9/031
~~-
~~~~
30.9
continued
conclusiveevidence that where and to the extent that any of the particular qualities of any materialsorgoods or any particularstandardof an item of workmanshipwas describedexpresslyin the Contract Drawingsorthecontract Bills, or in any of the Numbered Documents, or in any instruction issued by the Architecthhe Contract Administrator under the Conditions, or in any drawings or documents issuedby the ArchitecthheContractAdministrator under clause 5-3.1.1or 5.4 or 7, to beforthe approval of the ArchitecthheContract Administrator, the particular quality or standard wastothe reasonablesatisfactionofthe ArchitecthheContract Administrator, but such Certificateshall not be conclusiveevidencethat such or any other materialsor goods or requirementorterm of this Contract, and conclusiveevidencethat any necessaryeffect has been Contractwhichaffectthe has been any accidental inclusionor exclusio figure in any computationor any arithmetical eventthe Final Certificateshall haveeffectas computations, and conclusiveevidence that all and only such ext under clause25 have been given, and conclusiveevidence that the Contractor pursuantto c which the Contractor has or matters referredto in clause of care, statutory duty or
30.9
.2
If any adjudication, arbitratio Party beforethe FinalCertific conclusive evide
been commenced byeither I Certificateshall have effect as reupon the FinalCertificate shall be judgment inorsettlement of such e Final Certificate during which neither
e 41A-7.1 either Partywishes to have a dispute or difference, on
s given his decision on a date which is afterthe date of issue of

Ily determined by arbitration or legal proceedings, either Party
ion or legal proceedingswithin 28 days of the date on which the no certificate of the ArchitecthheContract Administrator shall of itself be
LAWA 98 (9/03)
63
31
Definitions
Construction Industry Scheme (CIS)

Inthisclause and in the Appendix: 'the Act' means the Incomeand Corporation Taxes Act 1988orany statutory amendment or modification thereof; 'Authorisation' means: either
31.1
'CIS 4', the registrationcard designated'CIS 4(T)'andwhich has an expiry date or 'CIS 4(P)', in the form provided by regulations7 and 7C of the Regulationsappearing asshown inSchedule 1oftheRegulationsandissued byt
'CIS 5' or 'CIS 6 ' ,the certificates in the form provide Regulationsand appearing as shown in Schedule 1 the Inland Revenue; a 'certifying document' createdon the Cont fax or photocopy, in the form prescribedby
or
or
'construction operations' means those operations operations; 'contractor' means a personwho is a contractor for Regulations; 'the direct cost of materials' means the materialsused orto be used in carryi underwhich the payment is made r 'the Regulations' means the I Regulations 1993S.I. No.743 ConstructionIndustMAmen re-makingt h e r e o f ; U & \ 'statutory deduction' m nsthe to in S.559(4) and (4A)of h t; t
e Ac't as construction
Act and the tor or to any other person of erations to which the contract ion 7 of the Regulations; n the Construction Industry) ax (Sub-Contractorsin the S.I. No. 2622 or any amendmentor
ductio
hi
is in forceatthetime of payment referred . . purposesof the Act and the
'sub-contractor' m e r s o h s
2ub-contractor forthe
form CIS 25 provided by regulation7 and appearingas gulations and issued by the Inland Revenue;
t voucher CIS 24 in the form provided by regulation 29 and
own in Schedule 1ofthe Regulationsandissued bythe Inland ppendixthatthe Employer is nota'contractor'clauses31~3to31~14 less if, at any time up to the payment of the Final Certificate, the or', the Employer shall so inform the Contractor and the all thereupon become operative. shall not make any payment under or pursuantto this Contract unless a ation has been providedto him or his nominated representativeby the
Whether Employer is a 'contractof
loyer or his nominated representativeis not satisfiedwith the validity ofthe ntractor, he shall thereupon notify the Contractor in ing thatthe Authorisation is not valid.
U
64 @The Joint Contracts Tribunal Limited 2003
UWA 98 (9/03)
314
-2 Where a notification has been given under clause31-4.1, the Employershallnot make any payment under or pursuantto this Contract until either or the Employer or his nominated representativehas received an Authorisation which he considersto be valid the Contractor has re-submittedthe Authorisationwith a letterfrom the Contractors tax off ice, confirming that that Authorisation is valid.
Authorisation: CIS 4 registration card
31.5
.1 Where the Authorisation is a CIS 4 registrationcard, then 7 days beforethe final datefor payment of any sum due:
-1 e 1
the Contractorshall give to the Employera statements materialsto the Contractorandto any other personsto and
.1
a 2 the Employershall makethestatutorydeductionfrom
31.5
-2 Where the Contractorcomplieswith clause 31.5.1 against any loss or expense causedto the Employ amountofdirectcost referredto inclause31-5.1-1
31.5
31-5.1-1 isincorrect,the Employershall materials.

Authorisation: CIS 5 or CIS 6 ora certifying document Changeof Authorisation
31.6
Where the Authorisation is a valid pay any amount duewithout maki Where the Autho
umentthe Employershall
31.7
equently issuedwith a CIS 5 or ly inform the Employerand
Authorisation, clau
31.8
31.9
6 expires, the Employershall make no further paymentsto the o this Contract until the Contractor:
the Employeror his nominated representativean AuthorisationCIS 5 or rtifying documentandifsoclause31-6shall apply.

Vouchers
CIS 4 applies and the Employer has made paymentsto the Contractor, thin 14daysoftheendoftheincometaxmonth100.21 inwhichthe ide the Contractor with a copy of the CIS 25voucherthat he has sent to ing all the payments made in the tax month concernedand the total
6 applies and the Employer has made paymentsto the Contractor, n 14 days of the end of the incometax month 100.21in which the etheClS 24vouchertothe Employerwhoshall addthereto histax the voucherto the Inland Revenuewith a copy to thecontractor.
Footnote
100.21Theincome tax monthendsonthe5thdayofthe month. @The Joint Contracts Tribunal Limited 2003
65
LAWA 98 (9/031
Correctionof errors in making thestatutory deduction
31.12 Where the Employerhas madean error or omission in calculatingthe statutory deduction, he may correct theerror by repayment or further deductionfrom paymentsdueto the Contractor, subject only to an instructionby the InlandRevenueto the Employer notto make such a correction.
31.13 If compliance with thisclause 31 involves the Employerorthe Contractor in not complying
Relationto other clauses Disputesor differences
with any other of the Conditions, then the provisionsof this clause shall prevail.
31.14 The relevant proceduresapplicableunder this Contractto the resolutionof disputes or differencesbetweenthe Employerandthe Contractorshall apply to any dispute or difference betweenthe Employerand the Contractor as to the operation of this clause 31 except where the Act orthe RegulationsoranyotherActof Parliament order made under any Act of Parliamentprovidefor dispute or difference.
32
[Number not usedl
33
[Number not usedl
34
Effectof find of antiquities
Antiquities
34.1
All fossils, antiquitiesand other obje in excavatingthesameduring the Employer and upon discovery of s
.1
ch may be found on the site or
34.1
use his best endeavours
shall cease work if and insofar as
erve the object in theexact position and

34.1
.3 informthe
nistrator ortheclerkofworksofthediscovery trator shall issue instructionsin regardto what is to be the Contractor under clause 34.1,and (without
Architect's/ Contract Administratofs instructionson antiquitiesfound
a sub-contractor.
Direct loss andor expense
e Architecthhe Contract Administrator compliance with the 34.1 or with an instruction issued under clause34-2 has involved the loss andlor expense forwhich he would not be reimbursedby a er any other provision of this Contractthen the Architectithe
in clause 25i4.5.1so far as that clause refersto clause 34. be included inthecalculationofthe Ascertained Final Sum.
66
LAWA 98 (9/031
Part 2: Nominated Sub-Contractors and Nominated Suppliers Nominated Sub-Contractors

35
Definitionof a Nominated Sub Contractor
GENERAL
Where
.I in thecontract Bills; or e2
35.1 35.1 35.1 35.1
in any instructionof the ArchitecthheContract Administrat expenditureof a provis
-3 in any instructionof the ArchitecthheContract Admi requiringa Variationto th -3 -1 that it consists of work additionalto that describedby or referredto in the Contra -3 .2 that any supply and fixing of NominatedSub-Contractor i kindto any supply andfixing Contract Bills providedthat t nominatea sub-co
inistrator would delayedorhuithheld)
35.1
-4
by agreement (whichagre betweenthe Contract0 Employer
the ArchitecthheCont the subcontract accordance with NominatedSub 35.1 shall apply no for a PC sum to be i Contractors.
Contractor's tender for works otherwise reservedfor a Nominated Sub Contractor
rbytheuseofaprimecostsumorby Iselectionand approval of the suby materialsor goods or execute work, rovedshall be nominatedin contractor so nominatedshall be a Contract. The provisionsof clause Standard Methodof Measurement Quantitiesin respectof NominatedSub-
35.2
-1 Whe
ary courseof his business directlycarries out works to which clause 35 applies, andwhere items of such and the ArchitecthheContract Administrator is the Contractor for such items, then thecontractor shall r the same or any of them but without prejudiceto the west or any tender. If the Contractor's tender is accepted, Domestic Sub-Contractorwithout theconsentof the rator. Providedthat where an item for which the tor intendsto nominateasub-contractoris includedin ontract Administrator'sinstructionsissued under clause 14.3 it shall be he purposes of clause 35.2-1to have been includedin the Contract Bills and orktowhich it relates shall likewisebe deemed to have been set out inthe
\-)
of any tender accepted under clause 35.2 that clause 14shallapply work includedin the tender as if forthe referencetherein to the the Contract Billsthere were referencesto the equivalent documentsincludedin or referredto in the tender submittedunder clause35-2. None of the provisionsofclause 35 other than clause 35.2 shall apply to works for which a tender of the Contractor is accepted underclause 35.2.
L AWA 98 19/03)
67
PROCEDURE FOR NOMINATION OF A SUB-CONTRACTOR

35.3 35.4
The nomination of a sub-contractorto which clause 35.1 applies shall be effected in accordancewith clauses 35.4 to 35-9inclusive. The following documents relatingto NominatedSub-Contractorsareissuedby the JCTand are referredto in the Conditions and in those documents by the use either of the nameor of the identificationterm: Nameofdocument The StandardFormof NominatedSub-ContractTender 1998 Editionwhich comprises: Identificationterm
Documents relatingto Nominated Sub-Contractors
Part 1: The Architect'sflhe Contract Administrator's InvitationtoTenderto a Sub-Contractor

Part2: Tender byaSub-Contractor Part3: ParticularConditions(to beagreed bya and a Sub-Contractor nominatedunder The Standard Form of Articles of Nominated Sub-ContractAgreement betweena Contractor NominatedSub-Contractor, 1998 Edition The StandardConditions of Nomina Edition, incorporatedby referencein The Standard Formof Empl Sub-ContractorAgreement, The Standard For Sub-Contractor
Contractor's right of reasonable objection
n u
Conditions NSC/C
Agreement NSCN Nomination NSC/N sa reasonableobjection shall bea hall makesuch reasonableobjection in nt but in any case not laterthan 7 working days hitecvthe ContractAdministrator under clause n is madethe ArchitecthheContract Administrator may removethe objectionso that the Contractorcan then of such nominationinstructionor cancel such ssue an instructioneither under clause 13.2 omitting the of that nomination instructionor under clause 35.6 ntractortherefor.Acopy of any instruction issued under y the ArchitecthheContractAdministrator to the sub-
35.5
-1 Nopersonag NominatedSubwriting at from rece 35-6 nomi -2 Wh
35.5
Architect's/ Contract Administrator's instructionon Nomination NSCIN documents accompanyingthe i n s t r u n
ct Administrator shall issue an instructionto the contractor on nating the sub-contractorwhich shall be accompaniedby:
rt 1 completed bythe ArchitecVtheContractAdministrator and NSCflPart2
d signed by the sub-contractorand signed by or on behalf of the Employer togetherwith a copy ofthe numberedtender documents listed in and er with any additionaldocumentsand/or ntsthereto as have been approved by the ArchitecthheContract mpletedAgreement NSCNentered into betweenthe Employer and the ion of any alterationsto the informationgiven in NSC/T Part 1 item 7: obligationsor restrictionsimposedby the Employer item 8: order of Works: Employer's requirements item 9: type and locationof access; and
68
LAWA 98 (9/03)
35-6
-4 a copy of the PrincipalContractor's Health and Safety Plan. Acopyofthe instructionshall be sent bythe ArchitecthheContractAdministratortothesubcontractortogetherwith a copy of the completedAppendixfor the Main Contract.
- copy of
instructionto sub contractor Contractofs obligationson receipt of Architect's/ Contract Administrator's instruction
35.7 35.7
The Contractorshall forthwith upon receiptof such instruction:

-1 complete in agreement with the subcontractorNSCF Part3and havethat completed NSCFPart3 signed by or on behalfof thecontractorand by oron behalfofthe subcontractor: and
35.7
-2 execute Agreement NSC/A with the subcontractor and thereuponshall send a copy of the completedAgreement N signed NSCFPart3 (butnottheother Annexures to Agreement Contract Administrator.
Noncompliance with clause 35.7 Contractofs obligationto notify Architect/ Contract Administrator
35.8
If the Contractor, havingused hisbest endeavours, has receiptof such instruction,compliedwith clause 35.7, t either
or 35.8
Architect's/ Contract Administrator's duty on receipt of any notice under cl~~se354
.2 that the non-complianceis due to ot Within a reasonabletime after receipt Administratorshall:

-1 whereclause35 considers it reas
e Contractor's notice. IPPI

the Architectlthe Contract ontractor and so far as he ractor shall havecompliedwith
35.9 35.9
35-9
-2 where clause 35.8
with clause 35.7 in respect of such nomination the mattersidentifiedin the noticejustify noncan then comply with clause 35.7 in respect of such ructionor under clause 35-6nominatinganother sub-
1 /
\
/
35.12 h q n b e r G u s e d 1
ther matters identifiedin the Contractor's y include: any discrepancyin or divergence e numberedtenderdocumentsora discrepancyinordivergence betweenthe numbered tender documents and the documentsreferredto in clauses2.3.1 to 2-3.4; and anyreasonsgivento the Contractor by the sub-contractorfor not agreeing the itemsin NSCflPart3orfornotbeingprepared tohave NSCrrPart3 signed by or on his behalfwhichmay relateto: theitems inthe Main ContractAppendixsentto him bythe ArchitecVtheContract Administrator with a
copy of the nomination instructiondifferingfrom those in the MainContractAppendix attached to the Architect'dthe ContractAdministratofs Invitationto Tender(NSC/TPart1);orto any informationgivento him in items7,8and9oftheArchitect's/theContract Administrator's Invitationto Tender having been changed as confirmed by the Architectlthe Contract Administrator when issuing his nominationinstruction (seeclause35~6~3),whichchanges haveto beidentified in N S W Part 3.
LAWA 98 (9/03)
69
ArchitecVContract Administrator
35-13 -1 The Architecuhe Contract Administrator shall on the issue of each Interim Certificate:
70
U W A 98 (9/03)
35.13 .5
continued
-3 -4 clause 35-13.5-2shall cease to have effect absolutely if at the date when the reductionand paymentto the NominatedSub-Contractorsreferredto in clause 35.13-5.2would othewise be madethere is in existence
either a Petitionwhich has been presentedto the Courtforthe winding up of the Contractor or a resolution properly passedforthe winding up of the Contractor other than for the purposesof amalgamationor reconstruction whichever shall have first occurred. [qq~
Agreement N S C p prenomination payments to Nominated S u b Contractorby Employer
35.13 -6 Where, in accordance with clause 2-2of Agreement NS date of the issue of an instructionnominatinga sub-contra amount in respectof design work and/or materialsor are included in thesubject ofthesubcontractsum or
-6 -1 the EmDlover shall send to the Contractorthe wr en statem t of t Sub-Contractorof the amount to be credited .6
.2
n w
minated
the Employer may make withholdingsorded from the amountsstated as due to the Contra which include amounts of interim orfin Contractor; providedthat due in anyone Interim Ce NominatedSub-Contract0 ContractAdministrator.
unt of such credit
EXTENSION OF PER CONTRACT WORKS
F NOMINATED SUBSub-Contractorany extension of the ecompleted except in accordance ich requirethe written consent of shall operatethe relevant provisions of ce, particularsand estimate and a request
INATED SUB-CONTRACT WORKS
d that clause 35.14 has been properly applied, the ArchitetSAhe hall so certify in writing to the Contractor. Immediatelyupon
issued not laterthan 2 months from the date of notificationto the ArchitecMhe Contract Administratorthatthe NominatedSub-Contractorhas failedto completethesubcontract works orany part thereof.
Footnote
[qqlWhere thecontractoris a person subjectto bankruptcylawsand not the law relatingto the insolvencyof a company, clause 3513.5.3.4 will
requireamendmenttorefertothe eventsonthe happeningof which bankruptcyoccurs. (Seealso footnote le].)
LAWA 98 (9m3)
71
PRACTICAL COMPLETION OF NOMINATED SUB-CONTRACT WORKS

35.16 When in the opinionof the ArchitecVthe Contract Administrator practicalcompletionof the works executedby a NominatedSub-Contractoris achieved andthe Sub-Contractorhas compliedsufficientlywithclause 5E.2.5of ConditionsNSC/C he shallforthwith issue a certificateto that effect and practicalcompletion of such works shall be deemed to have taken place on the day named in such certificate, a duplicatecopy ofwhich shall be sent by the ArchitecthheContract Administratortothe NominatedSub-Contractor; where clause 18 applies practicalcompletion of works executed by a NominatedSub-Contractor in a relevant part shall be deemed to have occurredon the relevant date to which clause 18-1refers and the ArchitectitheContract Administratorshall send to the NominatedSub-Contractor a copy ofthe written statement which he has issued pursuanttoclause
EARLY FINAL PAYMENT OF NOMINATED

35-17 Providedclause 5 of Agreement NSCW remai the day named inthe certificateissuedunder c Administrator may, and Interim Certificatethe gr contract sum or ascertainedfinal sub-contra the relevant provisionsof ConditionsNSCK Contractor: 35.17 -1 hasintheopinionofthe Archite remedied any defects, shrinkag NominatedSub-Contractor is bo 35.17 -2 hassentthroughthe Quantity Surveyoral sum orthe comput 35.17.
Defectsin nominatedsubcontract works after final paymentof NominatedSubcontractor beforeissue of Final Certificate
ared and which the ominatedSub-Contract; and

act Administratororthe djustmentof the sub-contract
35.18 Upon payment by Contractor(the'origina 35.18 .1 -1 ifth
for paymenttothe NominatedSubountcertifiedunder clause35-17 then:

ctifyanydefect,shrinkageorotherfauItin the to remedy underthe NominatedSube issue ofthe FinalCertificateunderclause Administrator shall issue an instruction nominating contractor')to carry out such rectificationwork and ominated Sub-Contractorsin clause35shall apply to
s u c h f u r t v ke such steps as may be reasonableto recover, underthe rom the original sub-contractora sum equal to the sububstitutedsub-contractor.Thecontractorshall payor allowto erence between the amountso recovered by the Employer ract priceof the substitutedsu b-contractorprovidedthat, before ation has been made, the Contractor has agreed (which ot be unreasonablydelayed or withheld)to thesub-contractprice e substitutedsub-contractor. shall override or modifythe provisionsof clause 35.21. ayment to a NominatedSub-Contractorundertheprovisionsof
I Completionof the Works or the datewhen the Employertakes
,whicheverfirstoccurs, the Contractorshall be responsiblefor

-contractworksforwhicha paymenttowhichclause35.17 refers has been madeto the same extent but notfurther or otherwisethan he is responsiblefor that part of the Works for which a paymentas aforesaidhas not been 35-19 .2 the provisionsof clause22Aor228 or 22C whichever is applicableshall remainin full force and effect.
72
LAWA 98 (9/031
POSITION OF EMPLOYER IN RELATION TO NOMINATED SUB-CONTRACTOR

35.20 Neitherthe existence nor the exercise of the powers in clause 35 nor anything else contained in the Conditions shall renderthe Employer in any way liable to any NominatedSubcontractor except by way and in the terms of the Agreement NSCNV.
CLAUSE 2.1 OF AGREEMENT N S C W POSITION OF CONTRACTOR

35-21 The Contractorshall not be responsibletothe Employerfor:
-1 the design of any nominatedsub-contract works insofar as su contract works have beendesignedby a NominatedSub-Con
.2 the selectionof the kindsof materialsand goodsforany no insofar as such kinds of materials and goods have been se1 Contractor;
-3 the satisfactionof any perfor

performancespecificationor requirement is inch any nominated sub-contractworks included in or documents enclosedwith any NSCfl Part 1; .4 the provision of any information req in reasonabletimesothatthe Archit provisionsof clauses 5-44 and 5.4-2 in r ctor underthis Contract ominated Sub-
Nothing inthisclause35-21shall affec in regardtothe supply ofworkmanshi Contractor.
RESTRICTIONS IN
35.22
LIMITATION OF LIABILITY OF
the Employer
35.23
NECESSARY
35.24
35.24-ums
the Architectithe ContractAdministratorthat in the minion ofthe NominatedSub-Contractorhas made default in respectof any one or
that the NominatedSub-Contractorhas
insolvency events referredto in clause7-24 of ConditionsNSC/C fhsolvency of Nominaredsub-Conrractorl has occurredand either that under clause7.2.3 of the aforesaidConditionsthe employment of the NominatedSub-Contractorhas been automatically determinedor that under clause7.2.4 of those Conditionsthe Contractor has an option, with the written consent of the Architectithe Contract Administrator, to determine the employment of the NominatedSub-Contractor;or 35.24 -3 the NominatedSub-Contractor determines his employment under clause 7.7 of Conditions NSC/C; or
LAWA 98 (9103)
7 3
iI
:!
35.24 -4 the Contractor has been required by the Employerto determinethe employment of the NominatedSub-Contractorunder clause 7-3of Conditions NSC/C and hasso determinedthat employment; or 35.24 *5 work properly executedor materials or goods properlyfixed or supplied by the NominatedSub-Contractor haveto be taken down and/or re-executedor re-fixedor resupplied(work to be re-executed)as a result of compliance by the Contractor or by any other NominatedSub-Contractorwith any instructionor other exercise of a power of the Architect/theContractAdministratorunderclause7 Or840r 17-2or17.3and the NominatedSub-Contractorcannot be required under the NominatedSub-Contractand does not agreeto carry out the work to be re-executed; theIn: 35.24 -6 Where clause35.24-1applies: .6 to give to the NominatedSub-Contractor defaultsto which clause7.l.l of Conditio instruction statethat the Contractor mus Architecthhe ContractAdministrator be NominatedSub-Contractorunder claus
-6
,i
the NominatedSub-Contractor clause7-1.2or7.1.3of Conditi in clause35.24-6.1 has Contractorshall confir has been determined;
*6
1, the employment of ontractor under er instruction referredto ominated Sub-Contractor
een so determinedthe nomination of a subtosupply and fixthe ted by or any materials or goods supplied by e employment has been determinedwhich ant NominatedSub-Contract.
4
35.24 *7
nd the Contractor has an option under clause 7-2-4of of Nominated Sub-Contractor)to determinethe Sub-Contractor,clause 35.24-7.2 shall apply in
[?U)
mi istrator orthe administrative receiver of the NominatedSub-
with his creditors or, being a company, after making a voluntary arrangement for acomposition of debts or a scheme of arrangement approved in accordance with the Companies Act 1985orthe InsolvencyAct 1986 or any amendment or re-enactmentthereofas the case may be preparedand able to continue tocarry out the relevant Nominated -Contract and to meetthe liabilitiesthereunder, the Architecthhe Contract Administrator may withhold his consent. Where continuation on such terms does not apply the ArchitecthheContractAdministrator shall give his consent to a determinationby the Contractor of the employmentof the Nominated Subcontractor unlessthe Employer and the contractor otherwise agree.
74
LAWA 98 (9/03)
35.24 continued -7 .3 Wherethe written consent of the ArchitecthheContractAdministratorto the determinationof theemploymentofthe NominatedSub-Contractor has been given and the Contractor has determinedthat employmentorwhere, under clause 7-2.3of the Conditions NSC/C, the employmentof the Nominated Sub-Contractorhas been automaticallydeterminedthe followingshall apply. The ArchitecUhe Contract Administrator shall make such further nominationof a sub-contractorin accordance with clause35 as may be necessaryto supply and fix the materialsor goods or to execute the work and to makegood or re-supplyor re-executeas necessaryany work executed by or any materialsor goods supplied by the NominatedSub-contractor whose employmenthas beend not in accordancewith the relevantNominatedSub-Con
-7 .4
Whereclause35.24.4appliesthe Architect/theContrac such further nominationof a sub-contractorin accorda necessaryto supply and fix the materials make good or re-supplyor re-executeas materialsor goods supplied by the Nomi has been determinedwhich were not in accor Sub-Contract.
35-24 a 8
.1
materialsor goods Contract.

-8 -2 Where clause 35.24.5 ap
such further nomination 35.24 e 9 Theamountpro Sub-Contractre
ract Administratorshall make rdancewith clause 35 as may be to in clause 35.24-5. actor underthe Nominated r clause 35.24-6-3or 35.24.7.3 ue in InterimCertificatesand nd 35.24.8-1apply any extra amount ractor nominatedunderthefurther ontractorwho has validly determined ntract, and whereclauses35.24.5 and mployer resultingfrom such further r such amount is certifiedin respect of the nominationbe deducted by the Employer sContractor may be
ct Administratorshall makethe further nominationof a subn clauses 35.24.6.3,35.24.7,35.24.8.1 and 35.24.8.2 within a regardto all thecircumstances, afterthe obligationto make n has arisen.
OF NOMINATED
NominatedSubContractbyvirtueof any rightto without an instructionfrom the Architecthhe
I
Sub-Contractor is determined underclauses 7.1 to 7.5 of ConditionsNSC/C, the Architecthhe Contract Administratorshall providethe Contractorwiththe information and with the direction in an InterimCertificateto enable the Contractortocomplywith clause7.5.2 of ConditionsNSC/C: namelytheamount of expenses properly incurredby the Employer and the amount of direct loss and/or damage causedto the Employerby the determinationof the employmentof the NominatedSub-Contractor; and shall, pursuantto clause 35.13.1, issue an Interim Certificatewhich certifiesthe value of any work executedor goods and materials
LAWA 98 (9/031
75
35.26 -1 continued
suppliedby the NominatedSub-Contractorto the extent that such value has not been included in previous InterimCertificates.
35.26 -2 Where the employment of the NominatedSub-Contractoris determined under clause 7-7of Conditions NSCK and clause7.8 of those Conditions applies, the Architecahe ContractAdministrator shall, pursuanttoclause 35.13.1, issuean Interim Certificate which cettifiesthevalueof anyworkexecutedor goodsand materialssupplied bythe NominatedSub-Contractortothe extentthat such value has not been includedin previous InterimCertificates.
76
Nominated Suppliers
Definitionofa Nominated Supplier
36.1
-1 In the Conditions 'Nominated Supplier' means a supplierto the Contractor who is nominated bythe Architecthhe ContractAdministrator in one of the following ways to supply materialsor goods which are to be fixed by thecontractor: -1 -1 where a primecost sum is included in the Contract Bills in respectofthose materials or goods and the supplier is either named in the Contract Bit named by the Architecthhe ContractAdministrator in an ins clause 36.2; the ArchitectltheContractAdministrator in r the supply of materials or goods is made the in an instructionissued under clause 36-2; -1 -3 where a provisional sum is includedin the Co the ArchitectltheContract Administrator in re there isonlyone supplierfro the supply of materials or go hall be deemedto have .1
-4 where the ArchitecthheCo
36.1
.2
Inthe Conditio
d Supplier' shall not apply to a supplier of e Contract Bills to be fixed by the Contractor dsasdefined inclause36.1-1-3.
Architect's/ Contract Administrator's instructions Ascertainment of costs to be set against primecost sum
tor shall issue instructionsfor the purpose of n respect of which a prime cost sum is
perlychargeabletotheEmployer in on instructionofthe Architecthhe ContractAdministrator" paid or payable in respect of the materialsor goods, less use 36-4.4,properly so chargeable
reated, or is capableof being
t otherwise recoverable underthis
ctbywhomsoeverpayablewhich is payableunderor byvirtueofanyActof nt on the import, purchase, sale, appropriation,processing,alteration, for sale or use of the materials or goods to be supplied; and livery afterallowingforany
~
I
I
r payableto, or allowed or allowable by,thesupplierlessanydiscountotherthan acash discountfor payment in full within 30 days of the end of the month during which delivery is made.
LAWA 98 (9/03)
77
36.3
-2 Where in the opinionof the ArchitecthheContract Administratorthe Contractorproperly incurs expense, which would not be reimbursedunderclause 36-34 or otherwiseunder this Contract, in obtainingthe materialsor goodsfrom the NominatedSuppliersuch expenseshallbe includedin thecalculationofthe Ascertained FinalSum.
Save where the ArchitecthheContract Administratorand the Contractorshall otherwise agree, the ArchitecvtheContract Administratorshall only nominateas a supplier a person who will enter into a contractof sale with the Contractorwhich provides, inrerelie:
. I thatthematerialsorgoodsto besuppliedshallbeofthequalityandstandardspecified
Sale contract provisions Architect's/
36.4
Contract
Administratof s rightto nominate supplier
36.4
providedthatwhere and to the extent that approvalof the quality of materialsor of the standards of workmanship is a matterfor the opinion of the
36.4
-2 thatthe NominatedSuppliershall make good by replac
.2
-1 where the materialsor goods have been U reasonable examinationby the Contract0 using orfixing;
ledthem before rial inthe materialsor ny personor persons
36.4
-3 thatdeliveryofthe materi
II becommenced,carriedout and e to be agreed betweenthe ,to the extentagreed, the following
civil com&ocal
c & n a &
of workmen, strike or lock-out;or nistrator underclause 14.2 ract Administratorto supply to the Nominated cessary informationfor which he hasspecifically reasonably distantfrom nor cessaryforhim to receive the
all be commenced, carriedout and ance with the reasonabledirectionsof the Contractor;
beobligedto make anydeliveryof materialsor
month during which delivery is made less only a discountfor cash of 5 percent if so paid;
36.4 .7
thatthe ownershipof materialsor goods shall passtothe Contractorupon delivery by the NominatedSupplierto or to the order of the Contractor, whether or not paymenthas been made in full;
LAWA 98 (9/03)
78
36.4 364
-8 that if any dispute or differencebetween the Contractorand the NominatedSupplieris referredto arbitrationthe provisionsof clause 41B shall apply; -9 that no provisionin thecontractof sale shall override, modify or affect in anyway whatsoever the provisions in the contractof sale which are includedthereinto give effectto clauses 36.4.1 to 36.4.9 inclusive.
-1 Subject to clauses 36.5.2 and 36.5-3,where the said contractof sale betweenthe Contractor and the NominatedSupplier in any way restricts, limits or excludesthe liabilityofthe NominatedSuppliertothecontractor in respect of materialsorgoods suppliedorto be supplied, and the ArchitecthheContractAdministratorhas specifically approvedin writing the said restrictions,limitationsor ex Contractortothe Employer in respect of the said materials limitedor excludedto thesameextent. -2 The Contractorshall not be obligedto enter into a contra until the ArchitecthheContractAdministrator has specific said restrictions, limitationsor exclusions. -3 Nothing in clause 36.5 shall be construedas e n a b l i n & & % & t i ? h h h t r a & Administratorto nominatea supplier otherwiseth stated in clause 36.4.
Contract ofsale restriction, limitationor exclusion of liability
36.5
36.5
36.5
L AWA 98 19/03)
79
Part 3: Fluctuations
Choice of fluctuation provisions-entry in Appendix
37
Fluctuationsshall be dealt with in accordancewith whichever of the following alternatives clause39 Irrl; or clause 40 ISSI is identified in the Appendix.The provisionsso identified shall be ~al deemedto be incorporatedwith the Conditionsas executedby the Parties hereto.
Clause 38: Not used Clause 39:Labour and materials cost and tax fluctuations Clause 40: Use of priceadjustmentformulae
[nlClause39 should be usedwherethe Parties have agreedtoallowthe labourandmaterialscostandtax fluctuations to which clauses39~1 to .3 refer. Alternatively, clause 40 should be used where the Parties have agreed that fluctuations shall be dealtwith by adjustmentof the lender Price under the Price Adjustment Formulaefor Building Contracts. IsslClause 40isusedwheretheParties haveagreedthat fluctuationsshall bedealtwith underthe Price Adjustment Formulaefor Building Contracts.
Ittl Notwithstanding theprovisionsofclause37on

deemedincorporationthe Parties may nevertheless wish to incorporatethe agreed alternative fluctuation provisions in the executedContract.
80
LAWA 98 (9/03)
Part 4: Settlement of disputes adjudication arbitration legal proceedings
41A
Adjudication [uull
! I
!'
Application of clause41A ldentityof Adjudicator
41A.1 Clause 41Aapplieswhere, pursuantto article 5, either Party refersany disputeor difference arising underthisContractto adjudication.
bythe person named in the Appendix (the'nominator'). Providedth

41A.2 -1 no Adjudicator shall be agreed or nominatedunder clause will not execute the Standard Agreementfor the appointme bythe JCT (the'JCTAdjudicationAgreement' IWWI)with the
must be reached
appointmentof, and the referr within 7 daysof the date of th

Parties from the nomi
e to, the Adjudicator icatororupon receiptbythe
thereupon execute wi
I
Death of Adjudicator inability to adjudicate
for some other cause and is thus d to him, then eitherthe Partiesmay tororeither Party may applytothe o adjudicate that dispute or difference; and reementwiththe agreed or nominated res a disputeor differenceto be referredto
Dispute or difference notice of intention to refer to adjudication referral
lyon such agreement or appointment.The said Party shall particularsof the disputeor differencetogetherwith a
works relatingto the primary structural elements the Adjudicator should consider an accelerated time table forthe adjudication procedures:see JCTPractice Note2 (Series2): Adjudication under JCTForms.
1
Adjudication Agreement'. [ww)The JCTAdjudicationAgreement isavailable from theretailersof JCTForms. Avarsionofthis Agreement isalsoavailableforuse if the Parties have named an Adjudicator in their contract.
81
LAWA 98 (9/03)
41A.4 *Z
The referral by a Party with its accompanying documentationto the Adjudicator and the copiesthereofto be provided to theother Partyshall begiven by actual deliveryor by FAX or by special delivery or recordeddelivery. If given by FAX then, for record purposes, the referraland its accompanyingdocumentation mustforthwith besent by first class post or given by actual delivery. If sent by special delivery or recorded delivery the referral and its accompanyingdocumentationshall, subjectto proof to thecontrary, be deemedto have been received 48 hours after the date of posting subject to the exclusionof Sundays and any Public Holiday.
Conductofthe adjudication
41A.5 *1 The Adjudicator shall immediately upon receiptof the referral and its accompanying documentationconfirmthedate of that receipt to the Parties. 41A.5 -2 The Party not makingthe referralmay, bythesame mean to the Adjudicatorwithin 7 days of the date of the referral, a written statementof the contentions on which he relies Adjudicator to consider. 41A.5 -3 The Adjudicator shall within 28 days of the refe Adjudicatorforthe purposesof S.108ofthe Ho RegenerationAct 1996andnot as forthwith send that decision in writ made the referral may consent to a days by upto 14days;andthatby been made a longer periodthan 2 Adjudicator within which to reach his de 41A.5 *4 The Adjudicatorshallnot be obliged 41A.5 .5
as heconsiders necessary
sown procedure; efactsand the law y includethefollowing:
ing and revising any certificate, opinion, en or made under this Contract as if no ent or notice had been issued, given or rthfinformation than that contained in the notice of ng documentationor in anywritten statementprovided resultsof any tests that have been made or of any outtests or additionaltests orto open up work or f the Works or any workshop where work is being or has been ormation as he considersnecessaryfromany employee or of the Parties provided that beforeobtaining information from an arty he has given prior notice to that Party; thers such information and advice as he considers necessary on legal matters subject to giving prior notice to the Parties together estimateof the cost involved; any term of this Contract relatingto the paymentof interest, mstances in which orthe periodforwhich asimple rateof interest
rty to enter into the JCTAdjudication Agreement orto comply with any requirementof the Adjudicator under clause 41A.5.5 orwith any provision in or requirement underclause41Ashall not invalidatethe decision ofthe Adjudicator.
41A.5 .7
The Parties shall meettheir own costs of the adjudication except thatthe Adjudicator may directastowhoshould paythecostof anytestoropening upif requiredpursuantto clause 41A.5-5.4.
82
LAWA 98 (9/03)
41A.5 .8 Where any dispute or difference arises under clause8.4-4 as to whether an instruction issuedthereunder is reasonablein all the circumstancesthe following provisionsshall apply:
a8
~1 The Adjudicatorto decide such dispute or differenceshall (wherepracticable)be an individual with appropriate expertise and experiencein the specialistarea or discipline relevantto the instruction or issue in dispute.
-8 -2 Where the Adjudicator does not havethe appropriate expertiseand experience referredto in clause 41A.5.8.1 abovethe Adjudicator shall appoint an independent expert with such relevant expertise and experienceto advise and report in writing circumstances.
-8 -3 Where an expert has been appointedby the Adjudicator
pay the fees and expenses of such expert or the prop0 expenses are to be shared betweenthe Parties. expert has been appointedby the Adjudica copies of the Adjudicator's instructionstot
Adjudicator'sfee and reasonable expenses payment
41A.6 -1 The Adjudicator in hisdecision shal expenses is to be apportionedas b

proportions.
ee and reasonable t of such statement the
judicatorfor hisfee and for all expenses reason

Effect of Adjudicator's decision
41A-7 -1 The decision of th difference is finall
the Parties until the dispute or legal proceedingsIXXI or by an erthe decision of the Adjudicator has
41A.7 -2 The Partiessh

the decision of
41A.7 .3
Ifeith
Immunity
liable foranything doneoromitted inthe dischargeor purported Adjudicator unlesstheactoromission is in badfaith andthis Isimilarlyextend toany employeeor agentof theAdjudicator.
Rule or Rules is a referenceto the JCT 1998editionof the ModelArbitration Rules (CIMARIcurrent atthe Base Date.
article 7A either Party requiresa dispute or differenceto be referred Party shall serve on the other Party a notice of arbitrationto such Rule2.1 which states:
"Arbitral proceedingsare begun in respectof a disputewhen one partyserveson the other a written notice of arbitration identifyingthe dispute and requiring him to agreeto the appointment of an arbitrator";
Footnote
lxxlThe arbitration or legal proceedingsare not an appeal againstthedecisionof the Adjudicator but are a considerationof thedisputeor difference as if no decisionhad been made by an Adjudicator. @The Joint Contracts Tribunal Limited 2003 83
LAWA 98 19/03)
418.1 -1 continued
and an arbitrator shall be an individual agreed bythe Parties or appointedbythe person namedin the Appendix in accordance with Rule 2.3which states: "If the partiesfail to agree on the name of an arbitrator within 14 days (or any agreed extension)after: (i) the notice of arbitration isserved,or (ii) a previouslyappointedarbitratorceasesto hold officefor any reason, either party may apply for the appointmentof an arbitratortothe personso empowered."
By Rule 2.5:
418-1 -2 Where WOor more relatedarbitral proceedings

separate arbitrationagreements, Rules 2.6,2.7 a
41B-1 a 3 After an arbitratorhas been appointedeither

arbitrationto the other Party and to the Arbitra under article 7A to be decided in the arbitral pr thereto.
reflectsthe true agreement made b valuationsas may in his opinion b ewhichshall besubmittedto him in thesame
41B.3 Subjecttoclause
or shall be final and binding onthe Parties.

rty and to the Arbitrator):
418.4 -1 applytoth
itrationAct 1996oranyamendmentthereof shall applytoany ntractwhereverthesame, orany partof it, shall beconducted. Iwl onductedin accordancewith the JCT 1998editionof the
any dispute or differenceshall be determined by legal proceedings
Footnote
1yyIItshouldbenotedthatthe provisionsofthe Arbitration Act 1996do not extendtoScotland. Where thesiteoftheWorksissituatedinScotlandthenthe forms issued by the Scottish BuildingContract @The Joint Contracts Tribunal Limited 2003
Committee which containScots properlaw adjudication and arbitrationprovisionsare the appropriate documents.The SBCC issues guidance in this respect.
84
LAWA 98 f9/031
Part 5: Performance Specified Work [=I
Meaningof Performance SpecifiedWork
42.1
42.1 42.1 42.1 42.1
The term 'Performance SpecifiedWork' means work:
.I
identified in the Appendix, and
-2 which is to be provided by the Contractor, and
-3 for which certain requirementshave been predeterminedand ar Contract Drawings, and

-4 in respectofwhich the performancewhich the Employerre which the Contractor, by this Contractand subject to the CO achieve has been stated in the Contract Bills and these Bills either or information relatingthereto sufficient to h such PerformanceSpecifiedWork a provisionalsum in respect of the Perfor the information relatingthereto as referr
Contractor's Statement
42.2
Beforecarryingout any Performance ArchitecthheContractAdministrator these Conditions as the 'Contractor's
Contractorshall unt ofthecommentsof
Contentsof Contractofs Statement
42-3
The Contractor's Stat Contractor's proposa any information whic drawn or schedule provided in reason information, drawi
detail adequately to explain the nce SpecifiedWork. It shall include by the Contract Bills or, where there ,bythe instruction ofthe Architect/ ions; and, if applicable, shall be Contract Administrator can providethe
Time for Contractor's Statement
424 The Contractor's St
vided to the Architecvthe ContractAdministrator:
for its provisiongiven in the instruction bythe Architect/the on the expenditure of a provisionalsum for Performance
Ibe provided at a reasonabletime beforethe Contractorintends SpecifiedWork.

Arc hitect'd Contract
er receiptof the Contractor's Statementthe Architect/the Contract if he is of the opinion that such Statement is deficient in form and/or explain the Contractor's proposalsforthe execution ofthe Performance y notice in writing requirethe Contractor to amend such Statementso that the ArchitecthheContractAdministrator not deficient. Acopyofthe ended shall be providedtothe ArchitecthheContractAdministrator. mendment is requiredbythe ArchitecthheContract Administrator, the ponsiblein accordance with the Conditionsfor any deficiency in such tement and forthe PerformanceSpecifiedWorkto which such Statement refers.
~~~~~
Footnote
I n ] See PracticeNote 25'Performance SpecifiedWork'

paragraphs26to 24foradescriptionofworkwhich is notto be treated as PerformanceSpecifiedWork.
U WA 98 (9/03)
85
Architect's/ Contract Administrator's notice of deficiency in Contractofs Statement
42-6
If the Architecvthe ContractAdministrator shall find anything in the Contractor's Statement which appears to the Architecthhe Contract Administratorto be a deficiencywhich would adverselyaffect the performancerequired by the Employerfrom the relevant Performance SpecifiedWork, heshall immediatelygive noticeto thecontractor specifying the deficiency. Whether or not a notice is given by the Architecthhe Contract Administrator, the Contractor is responsiblein accordance with the Conditionsforthe PerformanceSpecifiedWork.
Definition of provisionalsum for Performance SpecifiedWork
42.7
A provisionalsum for PerformanceSpecifiedWork means a sum provided in the Contract Billsfor PerformanceSpecifiedWork where the following information has been provided in the Contract Bills:
-1 the performancewhich the Employer requiresfrom such wor -2 the location of such PerformanceSpecifiedWork in the bu .3
42.7 42.7 42.7
information relatingthereto sufficientto have enabledt allowance in programming for the execution of such P for pricing all preliminary items relevantto such Perfo
lnstructionsofthe ArchiteMhe Contract Administrator on other provisional sums Preparationof Contract Bills Provisional sum for Performance SpecifiedWork errorspr omissions in Contract Bills Variations in respect of Performance SpecifiedWork Agreement for additional Performance SpecifiedWork
4 2 . 8 No instructionof the ArchitectltheContractAdminis tor Dursua to cla
4.3.1 on the ire Ferformance expenditureof provisionalsums includedin the CO tra SpecifiedWork except an instruction on the expen itu of pr v' ion I sum included in the Contract Bills for PerformanceSpecifiedWork.
n (,
Qm
\ J
42.9
The inclusionof PerformanceSpecifiedm rk in the u e Bills departurefrom the methodof preparatio o
l l not be regardedas a erred to in clause2.2.2.1.
42.10 If in thecontract Billsthere clause 42.7.2 andlor 42.7.3,
42.11 Subject to clause
dministrator may issue instructions nce Specified Work. dministrator under clause 14.2 may require as a erformanceSpecifiedWork additional to that endix unlessthe Employer and the Contractorotherwise idean analysis ofthe portion oftheTender Pricewhich
42-12 No instruction
which has been

42.13 Where the Cont
Analysis
Integrationof Performance SpecifiedWork
ut the PerformanceSpecifiedWork, give any instructions of such PerformanceSpecifiedWork with the design of the subjectto clause 42-15, comply with any such instruction. is of the opinion that compliancewith any instruction ofthe Architecthhe injuriously affects the efficacy of the PerformanceSpecifiedWork, he of the relevant instructionspecify by notice in writing to the such injurious affection. ExceptwheretheArchitecthhe nistratoramends the instructionto remove such injurious affection, the ot haveeffectwithout thewritten consentofthe Contractorwhichconsent sonably delayedorwithheld. ension of time in respect of the RelevantEvent stated in clause 25.4.15 an me shall not be given under clause25.3 and clauses 26.1 and 28.2.2 shall not haveeffectwhereandto the extentthatthecauseofthe progress ofthe Works having been delayed, affected or suspendedis that the ArchitecthheContract Administrator has not receivedthe Contractor's Statement by the time referredto in clause 42.4 or any amendment to the Contractor's Statement pursuanttoclause 42.5.
Compliancewith Architect's/ Contract
86
LAWA 98 19/03)
Performance Specified Work Contractor's obligation
42.17 -1 The Contractor shall exercise reasonableskill and care in the provisionof Performance SpecifiedWork providedthat:
-1 -1 clause 42.17 shall not be construedso as to affect the obligationsof the Contractor underthis Contract in regardto the supply of workmanship, materials and goods; and
. I -2 nothing in this Contract shall operateas a guaranteeof fitness for purpose of the
PerformanceSpecifiedWork.
42.17 .2 The Contractor'sobligation under clause 42.17-1 shall in no way be modified by any service in respect of any PerformanceSpecifiedWork which he h others and, in particular, the Contractorshall be responsibl such service had been undertaken bythe Contractor himself.
Nomination excluded
42-18 PerformanceSpecifiedWork pursuantto clause 42 shall not be p Sub-Contractorunder a NominatedSub-Contractor by a Nomin contract of sale to which clause36refers.
LA WA 98 (9/03)
87
Code of Practice: referred to in clause 8-4-4
This is the Code of Practice referredto in clause 8.4.4.The purposeof the Code is to help in the fair and reasonableoperationof the requirementsof clause8-4.4. The Architecflhe Contract Administrator and the Contractor should endeavourto agreethe amount and methodof opening up ortesting but in any case in issuing his instructions pursuantto clause8.4.4theArchitecthhe ContractAdministrator is mr o n s i d e r the following criteria: the need in the event of non-compliancet eitherthat it is uniqueand not Iikelytooc alternativelythe extent of any similar no or still to beconstructed; the needto discoverwhetherany non-com failure of workmanship and/or materials s must take place; or where the non-complia is such as is to be statistically expected and compliance indicates an inherentweak testing the extent of which must depen the significanceof the non-complia it has occurred; the consequence of any simila on users, adjoining prope Requirements;
detail concerned; the natureof the work in which
otherwise;
of the building, its effect any Statutory

f the Works by the Contractor;
\>
re relevantof any sub-contractor rredto in paragraph2-5 above or
issued bya responsiblebodywhich are materials or goods;

rryout,ortosecurethecarryingoutof,anytests
nts or in an instructionof the Architecthhe Contract
e r aso fo h
on-compliancewhen this has been established;
. al a vic that the Contractorhas obtained in respectof the non-complying -Io &g&oods;
m u e d testing procedures; establishingwhether any similar nonative testing methodsare available, the time requiredfor and theconsequential
-15 anyotherrelevant matters.
U
88
LAWA 98 19/03)
Appendix
Clauseetc. Fourth recital and 31
Subject Construction Industry Scheme (CIS) Employer at Base Date *is a 'contractor'/is not a 'contractor' forthe purposes ofthe Act andthe
Fifth recital
CDM Regulations
Articles 7Aand 78 41B 41C
Dispute or difference - settlement of disputes
1e 3
Base Date Date for Completion Electronic data interchange ental Provisionsfor EDI
1-3
1.11
ociation Standard EDI
15.2 17-2
VATAgreement
Clause 1Aof theVATAgreement *applies/does not apply 1x1
19.1-2
Clause 19.1-2 *applies/does not apply
21.1-1
Insurance *may be requiredbs not required Amountof indemnityforanyone occurrence or series of occurrences arising out of one event
f
*(Delete as applicable)
laaal
IxlClause 1Acanonlyapply where thecontractoris satisfied at the date this Contract is entered into that his outputtaxonallsuppliestothe Employer underthis Contractwillbeateithera positiveorazerorateoftax.
[aaalIf the indemnityisto be for anaggregateamount and notfor anyone occurrenceorseriesofoccurrences the entryshould makethisclear.
Thisfoornorerepeats footnote[XI for clause 152.
LA WA 98 (9/03)
Clause etc. 22.1 "22A, 22B.II22C*2 22A.3.1 220 220.2
Subject lnsuranceof the Works alternative clauses Percentageto cover professional fees Annual renewal date of insurance as supplied by Contractor lnsurancefor Employer's loss of liquidated damages - clause 25-4.3 Insurance "may be require-
"Clause 22AJClause 22BKlause 22C applies (Seefootnote ICCIto clause 22)
22FC.1
Joint Fire Code
d thatthe Works
22A applies these entries are mation supplied bythe if any, of compliance with
22FC.5
23.1.1 23*1-2,25*4-14,26-1
Date of Possession Clause 23.1.2 'appliesldoes not apply Period of deferment if it is to be less than 6 weeks is
24-2
Liqu(atvlasf6ed
damages
at the rate of
r;
28.2.2
Per
U
+Deleteas applicable.
LAWA 98 19/03}
Clause etc.
30.1 -3
Subject
Dates of issueof Interim Certificates (if nonestated, Interim Certificatesare to be issuedat intervals not exceeding one month up to the date of Practical Completionorwithin one month thereafter and the first InterimCertificate is to be issuedwithin one month of the Date of Possession) Listeditems -uniquely identified The first date is:
and thereafter on the same date in each month adjustedto the nearestworking day in that month 1aaa.11
30-3-1
30-3.2
Listed items -not uniquely identified
30.3-2does not apply 30.4*1.1

I
Retention Percentage (if lessthan5 percent) [bbbi Work reservedfor Nominated
35.2
,
I ,
I .
37 39.8 40.1 -1-1
Fluctuations
FormulaRules
rule 3: Base Month
rule 3: Non-AdjustableElement (notto exceed 10%) rules 10and30(i): Part I/Part 1 I [dddi of Section2 of the Formula Rules is to apply
[ccclDeletealternative not used.

aallThefirstdateshouldnot bemorethanonemonth
InterimCertificates be issuedon the last day ofeach monthconsider inserting"the lastdayof(inseflrnonth)andthereafterthe last day ineach month adjustedto the nearest working day inthe month". IbbblThe percentagewill be 5 percent unlessa lower rate is specified here.
ldddlStrikeoutaccordingtowhichmethodofformula adjustment (Part1 -Work CategoryMethodor Partll- WorkGroupMethod) hasbeenstatedinthe documents issuedto tenderers.
LAWA 98 (9/03)
97
Clauseetc.
41A-2
Subject Adjudication - nominatorof Adjudicator (if no nominator is selected the nominator shall be the Presidentor a Vice-President of the Royal Instituteof BritishArchitects; if the nominatorfailstonominate, the nominator shall be one of the other listed nominators selected by the Party requiringthe referenceto adjudication) Presidentor a Vice-Presidentor Chairman or aViceChairman: *Royal Instituteof BritishArchitects *The Royal Institutionof Chartered Surveyors *Construction Confederation 'National Specialist Contractors Council Limited *Delete all but o
418.1
Arbitration appointorof Arbitrator (if no appointor is selected the appointor shall be the President or a Vice-President of the Royal Instituteof BritishArchitects)
42-1-1
PerformanceSpecified Work
Id nti b o o na eparatesheeteach rf rma ce pecifiedworktobe Dro k W 'ded Q bd c t o r and insert the the Contract Bills lzri
ite of
V *DPnPA
U
Footnote
I221See Practice Note 25'Performance SpecifiedWork'
paragraphs2.6to2.8foradescriptionofworkwhich is
not to be treated as PerformanceSpecifiedWork.

ThisfootnoterepeatsfootnoteInl forclause 42.
92
LA WA 98 (WO31
Annex 1 to Appendix: Terms of Bond

agreed by the JCT and the British Bankers' Association See clause30.3: "Bond in respect of paymentfor off-site materials and/or goods"
Bond in respect of payment for off-site materials and/or goods

1
THE partiesto this Bondare:
whose registered office is at
The Employerand have agreedto ent
('the Contractor') r building works ('the Works') ('the Contract'). ions of the Contract as summarised below but with which the
the listed items'), has been includedas part ofthe Contract, before jacent to the Works; and has agreed to insure the listed items against lossor damage fortheirfull the interestsof the Employerand the the transfer of the property in the items they are deliveredto, or adjacentto, the Works; and paid to thecontractor in respect of the to or adjacenttothe Works. The Employershall in makingany demand provideto thesuretya Noticeof Demand in the m of the Scheduleattachedheretowhich shall be accepted as conclusiveevidencefor all purposesunderthis Bond.Thesignaturesonany such demand must beauthenticatedbythe Employer's bankers.
Annex 1 to Appendix: Terms of Bond

agreed by the JCT and the British Bankers' Association See clause30.3: "Bond in respect of paymentfor off-site materials and/or goods"
Bond in respect of payment for off-site materials and/or goods

1
THE partiesto this Bondare:
whose registeredoffice is at
The Employerand have agreedto ent
('the Contractor') ractfor building works ('the Works')
ions of the Contract as summarised below but with which the

I.
I
to include in the amount stated as due in Interim Certificates
or has agreedto insure the listed items against lossor damage for their full a policy of insurance protectingthe interestsof the Employerand the ring the periodcommencing with the transfer of the property in the items tor until they are deliveredto, or adjacentto, the Works; and
listed items which have not been delivered to or adjacenttothe Works.
purposes underthis Bond.The signatureson any such demand must be authenticatedbythe Employer's bankers.
LAWA 98 (9/03)
93
The Surety shall within 5 Business Days after receivingthe demand pay to the Employerthe sum so demanded. 'Business Day' means the day (otherthan a Saturday or a Sunday) on which commercialbanks are open for business in London. Paymentsdue underthis Bond shall be made notwithstandingany dispute betweenthe Employerandthe Contractorand whether or not the Employer andthe Contractorare or might beunderanyliabilityone totheother. Paymentbythesuretyunderthis Bondshallbe deemed avalid paymentfor all purposesof this Bondand shall discharge the Surety from liability to the extentof such payment. The Surety consents and agreesthat the following and done without noticeto or consent of the Surety a changing or releasingthe Surety from its obligations Surety hereundershall not in anyway be affected
(a) waiverbytheEmployerofanyoftheterms,pr agreements of the Contractor or any failure to
the Contractor; (b) any modificationor changes to the Contract;a d/ clause 9(blbelow.
(c) the granting of an extensionof time to the Contkctorw&&ffebting
Kz/O
"
the termsof
8
9
The Surety's maximumaggregate The obligationsof the Surety U
1.
e uponwhichever is the earlier of red to or adjacent to the Works as
(a) thedateon
bythe Surety in writing on or beforesuch earlier date.

10
The Bondis nodtrankferable obssibnable without the priorwritten consentof the Surety. Such written CO sent 'I1 not U easonablywithheld.
t-3'
11
ions of this Bond nothingin this Bondconfers or purports fits terms on any person who is not a party to it. nstruedin accordance with the laws of Englandand
12
*Thevaluestated in the Contractwhich theEmployer considerswillbesufficient tocover him formaximum paymentsto the Contractor forthe listed itemsthat will havebeenmadeandnotdeliveredtothesiteat any one time. 94 @The Joint Contracts Tribunal Limited 2003
LAWA 98 (9103)
INWITNESS hereofthis Bond has been executedas a Deed by the Surety and delivered on the date below: EXECUTEDas a Deed by: for and on behalf of the Surety: EXECUTEDas a Deed by:
LAWA 98 (9/03)
95
Schedule to Bond
(clause 4 of the Bond)
Notice of Demand
Date of Notice:
beingthe amount stated as due in re due in an Interim Certificate(s)for pa the Employer but such listed items h
o the Contractor by nt to the Works.
Address for payment:
This Notice is si
ns who are authorised by the Employerto act for
naturesto be authenticated by the Employer's bankers
96
LAWA 98 19/03]
Supplemental Provisions (the VAT Agreement)

The following are the supplementalprovisions(theVAT Agreement)referredto in clause 15.1 of the Conditions:
- additionof VAT
Interim payments
The Employershall pay to the Contractor in the manner hereinaftersetout anytax properly chargeable bythe Commissionerson the Contractoron the supply to the Employerof any supplies within the meaningof Regulation93of thevalue A any amendment or re-enactmentthereof.
Alternative provisions to clauses 1.1 to 1.2.2 inclusive
1A-1 Whereit isstated in the Appendix pursuanttoclause this Agreement applies, clauses 1.1 to 1.2-2inclusive any notice issued under clause 1A.4 hereof becomes
1.3 to8ofthisAgreement remain in full force and effe
1A.2
te the Contractor
varied rate comes into effect, send to the E Administrator, the necessary ame notice shall then take effect as so a
1A.3
he ArchitecthheContract ritten notice and that
e recovery by the Contractor, as tax properly chargeable by the t the rate given in the aforesaid 1shall be shown on each Interim
Architecthhe Con unt shall be paid by the Employertothe as the case may be within the periodfor (Interim Certificates)or clause30.8 (Final
Certificate)as a ppl 1A.4
Written assessmentby Contractor
1.1
ontractor shall not laterthan the date forthe issue of each spective values (lessany Retention Percentage applicable sand servicesforwhich the Certificateis being issued and elevant time of supply under Regulation93 ofthevalue lations 1995, on the Contractorat
tax (Category(i)) and
ates of tax other than zero (Category(ii)). all alsospecifythe rateorratesoftaxwhich arechargeableonthose in Category(ii), and shall state the grounds on which he considerssuch
U
LA WA 98 (9/03)
97
~~~~~~~~~~~
~~
'
Employerto calculate amount of tax due Employer's right of reasonable objection
1.2
-1 Upon receipt of such written provisionalassessment the Employer, unless he has reasonablegrounds for objection to that assessment, shall calculatetheamount of tax due by applying the rate or ratesof tax specified by the Contractorto the amount of the assessed value of those supplies includedin Category(ii) of such assessment, and remit the calculatedamount of such tax, together with the amount of the Certificateissuedby the Architect/the ContractAdministrator, to the Contractor within the period for payment of certificatesset out in clause 30.1.1.1 of the Conditions. -2 If the Employer has reasonablegrounds for objection to the provisionalassessmenthe shall within 3 working days of receipt of that assessment so notify the Contractor in writing setting out those grounds. The Contractorshall within 3 working days of receipt withdraws the assessment i underclause 1.2-1ofthisAg Contractor so confirms then Employer in respectof the authenticated receipt under clause 1.4 ofthis Agreeme
1.2
Written final statement VAT liability of Contractor recoveryfrom Employer
1-3
-1 Whereclause 1Aisoperatedclause1.3onlya Administrator. After the issue of the Certific underclause 17-4oftheConditionstheCon goods and servicesforwhich certific chargeableon the Contractor at -1 a zero rate of tax (Category( i d d -2 any rate or rates of tax ot andshall issuesuchfinal oftaxwhich arechargeableonthe nd shall state the grounds on which he amount of tax already received by the Contractor use 1.4 ofthis Agreement have been issued.
A\
1-3
.2
The state
is Agreement may be issued either before or after
statementthe Employershall, subjectto clause 3of this mount oftax due by applyingthe rate or ratesof tax esupplies includedin Category (ii) of the ng therefrom the total amount of tax already receivedby the the statement, and shall pay the balanceof such tax to the
s that the total amountof tax specified in the final statement as

exceedstheamountoftaxcalculatedunderclause1.3-3ofthis
4ofthisAgreementshowingthecorrection oftheamountsforwhicha receipt ts have previouslybeen issuedby the Contractor.
ofclause 1 orclause1Aofthis t of the kind referredto in taining the particulars
disregarded
If, when the Employer is obliged to make payment under clause 1.2 or 1.3 of this Agreement, he is empowered under clause 24of the Conditionsto deduct any sum calculated at the rate stated in the Appendix as liquidatedand ascertaineddamagesfrom sums due or to become due to the Contractor under this Contract he shall disregard any such deduction in calculatingthe tax due on the value of goods and services suppliedto which he is obliged to addtaxunderclause 1-2or 1.3ofthisAgreement.
98
LA WA 98 (9/03)
2.2
The Contractor when ascertainingthe respectivevalues of any supplies of goods and servicesforwhich certificateshave been or will be issued undertheconditions in orderto preparethe final statement referredto in clause 1.3 of this Agreementshall disregardwhen stating such values any deduction by the Employer of any sum calculatedat the rate stated in the Appendixas liquidatedand ascertained damages under clause240f theconditions. Whereclause 1Aisoperatedthe Employershall paythetaxtowhichthatclause refers notwithstandingany deductionwhich the Employer may be empoweredto make under clause 24 of the Conditions from the amount certifiedby the Architect/the Contract Administrator in an InterimCertificateor from any balancecertified bytheArchitect/the Contract Administrator as due to the Contractor under the FinalCertificate. lfthe Employerdisagrees with the final statement issued
2.3
Employer'sright tochallengetax claimed by Contractor
3-1
Commissionersfor such decision. If the Employer disa instructionsof the Employer make all such appeals Commissionersas the Employer shall request.The
3-2
Where, beforeany appeal from the deci amountofthetaxallegedto bechargea
3.3
Within 28daysofthefinal adjudic Commissioners ifthe Employerd
such decision to use 1.3.4 ofthis Agreement
Dischargeof Employerfrom liabilityto peytax to the Contractor
or 1.3.4of this Agreement orwhere
the Contractor in accordance with the VAT ices bythe Contractor underthiscontractthe itional payment bythe Employertothe er, as the case may be. The provisionsof clause
Awards in dispute procedures
~ provi r ion ~ i t n f 1 ~t ~ 'sAgr ~ r t i c l e 7 A notapplytoanymattersto ~ h a l l bedealtwith underclause3of

excl ded
n
/--7
anydisp eo nce is referredto an Arbitrator appointed pursuantto article 7Aorto ocee gs, then, insofaras any paymentawarded in such arbitration or legal rocee I sva iesthe amount certifiedfor paymentfor goods or servicessuppliedby the ontractor 0th EmployerunderthisContractorisanamountwhichoughtto have been so ce 'fied b wa not so certified, the provisions of this Agreement shall so far as relevant and yto any such payments.
ithstandingany provisionsto the contrary elsewherein the Conditionsthe Employer be obligedto make any further paymentto the Contractor under the Conditions if is in default in providing the receipt referredto in clause 1.4ofthis Agreement. rovidedthatclause7ofthis Agreementshall onlyapply where: 7
-1 the Employer can show that he requires such receipttovalidate any claim for creditfor
tax paid or payableunder this Agreement which the Employer is entitled to maketo the Commissioners, and
LAWA 98 (9/03)
99
.2 the Employer has paid tax in accordance with the provisionalassessment of the Contractor under clause 1ofthis Agreement unless he has sustaineda reasonableobjection under clause 1.2 of this Agreement; or paid tax in accordance with clause 1A of this Agreement.
VAT on
determination
Whereclause 27.4 of the Conditions becomes operative there shall be added to the amount allowable or payableto the Employerin addition to the amounts certified by the Architectlthe ContractAdministrator any additionaltax that the Employer has had to pay by reason of determination under clause 27 of the Conditionsas compared would have paid if the determination had not occurred.
100
LAWA 98 (9/03)
Annex 2 to the Conditions: Supplemental Provisionsfor EDI

(clause1.11)
The following are the SupplementalProvisionsfor EDI referredto in clause 1-11of the Conditions.
1
The Parties no later than when there isa binding contract betweenthe Employerandthe Contractorshall have entered into the Electronic Data InterchangeAgreement identified in
.I
.2
except where expressly providedfor in these provisions, not Agreementshall override or modify the application or inter thetypes and classes of communicationto which 'Data') andthe persons betweenwhom the Data s the Adopted ProtocoVEDIMessage Standardsand are as stated in the Contract Documentsor as subs the Parties; tion to which the
e3
-4 where the Contract Documentsrequire EDI Agreementapplies to be in writing i accordancewiththe EDIAgreeme writing in accordancewiththe re1 .4 -1 any determination of the e
ce of his obligations underthis

-4 .4
.3 theFinalCerti
-4
anyinvoki
eduresapplicable underthisContractto the ies amendingthe Conditions or these provisions. ractto the resolution of disputes or differences
e 4
-5 anyagree
Footnote
*The EDIAssociationStandard EDI Agreement refersto an Adopted Protocoland User Manual; the European Model EDI Agreement refersto EDI Message Standards and a Technical Annex. Deletewhichever is not applicable. @The Joint Contracts Tribunal Limited 2003
101
LAWA 98 (9/03)
LocalAuthorities With Approximate Quantities

This reprint incorporatesthe following amendments.
Amendment 1 , June 1999 ConstructionIndustry Schmne
(as)
Correctionsmadeand incotporetedinreprintdated May2001

Minorcorrestlonatowording. spelUng,upperandlowerceseand punctuation clause 5.4.2 clause 19.4.2.3 clause20.3.1 clause222 clause 25.4.61 clause264.2 clause 2764.2
(incorporatedMay20011
1.
Recltab
Fourthrecital emended Clause30 newclause30A inserted Clause31 redrafted Appendix1 entryon Fourth recitalamended
2.
3.
4.
AmendmentZJanuaw2000 Sundryamendments (incorporatedMey2001) clausel.12 newclauseinserted Clause301.3 amended Cbuse4lA clause 41A.5.5.2 amended newclause41A68 inserted newfootnoteluu.11inserted Appendu entryon30.1.3 amended newfootnotelaaall inserted entryon 41A.Zamended Fluctuationclauses
1.
2.
3 .
4.
1.
Statutoryrekrences VAT referencesupdated
Amendrnent5.July2003 Construction Skilh Certification Scheme (incorporatedSeptember2003)
1 .
Clause8 clause8.1.4 renumberedasclause

newclauseE1.4 inserted
newentryon 22FC.5 inserted
Previous p a g e is blank
104
@TheJoint Contracts Tribunal Limited 2003
LAWA 98 (9/031
For works which are to be carried out in Northern Ireland the Adaptation Schedule for use with this form of contract is available from the Royal Society of Ulster Architects, 2 Mount Charles, Belfast E l 7 1NZ.
Dated
Standard Form of Building Contract 1998 Edition
Published for the J 1-3 Dufferin Street @TheJoint Contracts All rights reserve Issued by The Joint Contracts Tribunal Limited
Members Association of Consulting Engineers Limited British Property Federation Limited Construction Confederation Local Government Association National Specialist Contractors Council Limited Royal Institute of British Architects The Royal Institution of Chartered Surveyors The Scottish Building Contract Committee

98 Local Authorities With Approx. Quants

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Standard Form of Building Contract 1998 Edition

incorporating Ame 1:1999 2: 2000

ThroughouttheArticles ofAgreementand Conditions, references to footnotesaremade by smallletrersin square brackets.

Attestation CONDITIONS: PART 1: GENERAL

6A.2 6A.3 6A-4

2.3 and 2.4 3

Person-incharge Amount to be includedin Ascertained FinalSum - lnteri Certificates

4.1 4.2 4.3 14 14.1 14.2 14.3 14.4 14.5 14.6

5 5.1 5-2 5.3 5.4

15 15-1 15.2 15-3

tract Administrator's certificates Supply of as-builtdrawingsetc. Specified Work

@TheJoint Contracts Tribunal Limked 2003

17 17.1 17.2 17.3 17.4 17.5

27 27.1 27.2 27-3 27.4 27-5 27-6 surance

28.3 28.4 28.5

22C-lA Terrorismcover existingstructuresand contents non-availability Employer's options

28A.2 to 28A.6 28A-7 Amountsattributabletoany NominatedSubContractor

@TheJoint Contracts Tribunal Limited 2003

35.9 35.10 35.1 1 35.12

35.15 35.16 35.17

Failureto complete n h n a t d b - c o n t r a cV t works Practicalco Earlyfinal

31 31.1 31.2 31.3

CONDITIONS: NOMINATED NOMINATEDSUPP SUB-CO PART2 RS

@The Joint Contracts Tribunal Limited 2003

CONDITIONS: PART4 SElTLEMENTOF DlSP ARBITRATION LEGAL PROCEEDINGS

41A 41A.1 41A.2 41A.3 41A.4

payment 41A.8 418

42.8 42.9 42.1 0

@The Joint Contracts Tribunal Limited 2003

the Employer is desirous of Ibl

the Contractor has supplied t rred to as the 'Contract Bills')

s stated in the Appendix;

Ibl State nature of intended works.

[cl Id1Not used.

@The Joint Contracts Tribunal Limited 2003

@The Joint Contracts Tribunal Limited 2003

Now it is hereby agreed as follows

Ascertained Final Sum

reasonabletime but in any case no laterthan 21 day

the Contract Administrator for the time be

Article 4 Ihl The term 'the Quantity Surveyor' i

to bethe Quantity Surveyorforthe purposeofthis

vant to the resolution ofdisputes or differencestil.

ljl Not used.

Article 6.2 Ikl

ontractor, or, in the ation 6(5)ofthe

Dispute or difference arbitration

Article 7A Where the entry in the Appe

applies has not been deleted

Dispute or difference legal proceedings

Ikl Delete articles 6.1 and 6 2 when only regulations7

@The Joint Contracts Tribunal Limited 2003

r z a n t t o clause 41A as the

ix to t e Conditions as completed by the Parties. under clause416 to be the Arbitrator.

@The Joint Contracts Tribunal Limited 2003

to which clause 30.8 refers.

@The Joint Contracts Tribunal Limited 2003

Parties: Party: PerformanceSpecified Work Periodof Interim Certificates: person: PlanningSupervisor:

body corporate. ortheother person

101 Amend as necessary if differentPublic Holidays are

@The Joint Contracts Tribunal Limited 2003

Standard Methodof Measurement:

Statutory Requirements: Tender Price: Valuation: Variation: VATAgreement: Works:

see clause 15.1.