ABSTRACT
It seems appropriate to begin by looking briefly at the standard forms under consideration. All the JCT forms of contract were substantially amended in April 1998 to take account of the Housing Grants, Construction and Regeneration Act 1996 and the Latham Report. All the forms were reprinted at the end of 1998. JCT 80, IFC 84, MW 80 and CD 81 became JCT 98, IFC 98, MW 98 and WCD 98 respectively. In 2005, these were further amended, re-written and became SBC, IC/ICD, MW/MWD and DB respectively. These forms were re-issued in October 2011 after having been amended to take account of changes to the Housing Grants, Construction and Regeneration Act 1986 wrought by the Local Democracy, Economic Development and Construction Act 2009. SBC is a very comprehensive document which is suitable for use with any
size of building works. Due to its complexity, however, its use is likely to be reserved for projects which are substantial in value or complex in nature. IFC 84 (now IC/ICD) was introduced to fill the gap between JCT 80 (now
SBC) and MW 80 (MW/MWD). A look inside the front cover suggests its use if the Works (all the work to be done) are of simple content, adequately specified or billed and without complicated specialist work. There is no suggested upper price limit but £450,000 (at 2011 prices) and a maximum contract period of 12 months seems reasonable. Price and length of contract period are not, however, the most important factors. MW and MWD are suitable for use on projects having a maximum value of
£190,000 (at 2011 prices). They are not suitable for complex Works and no provision is made for bills of quantities or nominated sub-contractors. Very importantly, as far as contractors are concerned, there is only limited provision for reimbursement of loss and/or expense, although a claim can always be made using common law rights. This form is very popular and not only for minor Works. It is known for it to be used in conjunction with bills of quantities, although quite unsuitable. The reason for its popularity is no doubt because it is short and simply expressed. Its simplicity is deceptive, however, and there are pitfalls for the unwary.
