ABSTRACT

The biggest difference between the JCT 2005 suite of contracts and the 2011 suite occurs in the payment provisions. This is a direct result of the changes to the Housing Grants, Construction and Regeneration Act 1996 brought about by the Local Democracy, Economic Development and Construction Act 2009. What follows can be no more than a brief summary and the parties are advised to study the contract terms carefully. SBC and IC/ICD provide for the issue of eight different kinds of certificate.

The figure for MW/MWD is five (no certificates are issued under DB, because there is no independent architect as certifier). Many of these certificates are not financial, although most contractors associate the word ‘certificate’ with money. In order to be a valid certificate, a document must be headed ‘Certificate’ or start with the words ‘I certify’ or be clearly referenced to the contract provision empowering issue. In any event, it must be the clear expression of the judgment, skill or opinion of the architect [1]. Financial certificates are covered by SBC clauses 4.6-4.15, IC/ICD

clauses 4.4-4.14, MW/MWD clauses 4.3-4.8. SBC and IC/ICD provisions are similar and will be discussed together. MW/MWD and DB will be considered separately below. Unlike the position under the 2005 JCT contract suite, the due date of

each payment is to be set out in the Contract Particulars. If no first due date is inserted, it will be a month after the date of possession and, in either case, thereafter on the same date or nearest business day every month until practical completion or one month thereafter (14 days in the case of IC/ICD). The due dates are then on the same date every two months until the end of the rectification period or the issue of the certificate of making good, if later. The architect has a maximum period of five days after each due date

in which to issue the certificate. The architect may ask the quantity surveyor to carry out a valuation not more than seven days before the date of the certificate, but responsibility for the correctness of the sum on the certificate remains with the architect [2]. The amounts to be included in each certificate are as follows.