JCT building contract.......(Contractor)

MrNiceGuy_007

....for a home owner/occupier who has appoint a consultant to oversee the work (revised July 2009) (Contractor)

Hello all,

After completing yet again another quality extension passed off by building control I always seem to have a problem with the ''JCT Building Contract for a home owner/occupier who has appoint a consultant to oversee the work''

At the end of the job the client is able to retain 5% of the total cost for 3 months, this is called the defect period. So after 3 months any faults or defects that arise will be fixed by the contractor or if the contractor won’t return another company can step in and the cost is deducted from the 5%. SIMPLE!!

The problem we are facing is the client is stalling the payment by not arranging or agreeing a return date to put right what are always very minor items such as decoration, cracked tile etc. The last 10 we have done under JCT contact normally take us one day so that in its self says how small the jobs are.

In the contract it doesn’t say anything about late payments or interest, which to be honest I’ve only just spotted. Does this mean we can’t charge admin costs, interest and late payment charges? if so what can we do... if we can what are the current rates.

It’s been 35 days passed when we should have completed the defects liability period and been paid. There must be some sort of protection for the contactor as a standard rule.

Any help!!

Thanks

DVardysShadow

Crosspost https://forums.moneysavingexpert.com/discussion/3821241

Post your problem just the once and save people giving an answer which already appears on another thread.

glubalub

Presumably the client has employed the consultant to supervise the works as well as design. Has the consultant produced the list of defects yet? I'm not an expert on the JCT for the home owner but my understanding is you can give the client and the consultant 7 days notice to produce the list and if they don't you can terminate the contract. If the consultant has produced the list the client has to grant reasonable access for you to carry out the remedial works. You can again write and give notice and if they don't allow access you can terminate the contract. Clause 12A does allow you to recover costs if the client doesn't hold up their end of the contract so a letter to the effect that you will seek to recover your interest and admin costs (which you may have to prove) may jolt them into action. You do have the right to seek adjudication to settle a disagreement and this is generally cheaper and quicker than a court case.

Taking a contract legal is always fraught with difficulties so if you have to, get some good advice.

One last thought, your obligation as the contractor is to provide the materials specified and to carry out the works to a reasonable standard. The only defects you are responsible for are defects in materials or workmanship. Consultants tend to make a list of everything they don't like the look of or is brought to their attention by the client but if the defect has been caused by the design, it's not your responsibility to put it right.

MrNiceGuy_007

glubalub thanks for replying, however I need to some more advice on the interest, admin and late payments.
I was reading the ''Late Payment of Commercial Debts (Interest) Act 1998'' is this a statutory act that doesn’t need to be out lined in a contract i.e. it just applies as a rule to anyone.
I know this is for commercial only not domestic, my next question...is there one for domestic peeps?

iamcornholio

The consultant should have inspected and prepared a defect/snagging list and then you arrange to visit. If you can't get access, then you refer back to the consultant to arrange.

If no appointment is forthcoming, and there are no extenuating circumstances, then you can give notice that you consider the contract fulfilled and no further work required. Two weeks notice should do it.

There is an onus on the consultant and client to agree something

If no access, then you could then consider the contact fullfilled and money due with 14 days, or consider the contract frustrated and breached - and make a claim in the county court or recommend arbitration.

At this stage, no money is due and no claim for late payments can be made. Claims for late payments are done via a court claim, and there is a set formula

Caremore

Thanks

To avoid tactics like this on furture jobs would it be possible to add items to the contract relating to late payments.

iamcornholio

Yes, any JCT or other pre-designed contract can be edited to remove or add clauses as long as all parties agree