ABSTRACT

Construction is a complex production system involving at least three and as many as seven main consultants and a main contractor with perhaps seven or eight domestic sub-contractors and often as many nominated sub-contractors; with both of the latter categories employing sub-contractors and certainly involved with numerous suppliers of goods. The chapter investigates the position of materials on and off-site with reference to advance payments, ownership and transfer of title to the employer. The contentious issue regarding payment for materials stored off-site are in who actually owns the title for the goods after payment has been certified. The position would appear to be clear cut in the light of JCT 80 clauses 16, Materials and Goods Unfixed or Off Site and clause 30.3, Certificates and Payments—Off Site Materials or Goods. Construction contracts and sub-contracts are contracts of work and materials and not contracts of supply.