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Explanatory Notes
Standard Terms & Conditions for Construction Work
B137 Standard Terms & Conditions for Construction Work
EXPLANATORY NOTES Designed from the Contractor's point of view, these standard terms and conditions are intended as a template for any contractor who is engaged in the business of providing construction or engineering works, especially when the works are to be carried out on premises of the Client. These terms and conditions are intended to be used with a quotation submitted by the Contractor to a Client and this is clear from the text. Turning to the specific clauses: 1. DEFINITIONS As indicated above, this refers to the Contractor's quotation and contains some other relevant definitions. 2. CONTRACT FORMATION This is intended to make it clear that the Contractor's terms and conditions override those of the Client. In practice, this can be more difficult than it appears and legal advice should be obtained. 3. GENERAL OBLIGATIONS Basic obligations on the part of the Contractor to exercise reasonable skills and care with an obligation from the Client to provide access to premises. 4. VARIATION This is designed to ensure that if a Client asks for a change, the Contractor will be paid for it at an appropriate rate. Also, a variation can result in a change to the contract period and this is covered by 4.2. In 4.4 the Contractor should be protected if unforeseen problems arise and in 4.5 the Contractor reserves the right not to undertake changes if these exceed a specified value of the Contract price. 5. CONTRACT PRICE & PAYMENT This refers back to the quotation to a large extent but in 5.3 there is a provision for the Contractor to receive interest on late payment.
6. INSURANCE This will need to be tailored to the particular circumstances but, except where works are carried out in an existing building, see 6.3 - the Contractor has primary responsibility for works insurance and public liability insurance. 7. HANDOVER & DEFECTS LIABILITY In accordance with the usual practice in the UK, the Contractor has responsibility for remedying defects for 12 months following completion and, under 7.1, the Contractor (in effect) fixes the date for handover of the works. Under 7.3, it is made clear that the Contractor's liability is limited to remedying defects during the 12 months defects liability period. Legal advice is recommended here as there may be overriding legislation which makes the Contractor liable for more than 12 months following handover. 8. TERMINATION This gives each party the right to terminate the contract if the other party commits a material breach, and either party can terminate if the other becomes bankrupt. 9. GENERAL This contains a number of provisions concerning notices, assignment, disputes etc. For more detail on some of these subjects, see Free Information on our website.
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