Schedules

Schedule 3: supplemental provisions

These provisions apply unless otherwise stated in the contract particulars. It is important that the parties recognise that these are supplemental provisions and parties are at liberty to include or omit these. Further some of the supplemental provisions are mutual provisions in that they place obligations on both parties while others apply to one party only for the benefit of the other.

Collaborative working

The parties are required to work with each other and other project team members in a co-operative and collaborative manner, in good faith and in a spirit of trust and respect. This clause also makes reference to behaviour that is not collaborative. What is not stated is any sanction for failure to work in a co-operative manner. Another significant point is the obligation to act in good faith. Good faith is a concept that the English courts have traditionally not recognised where the contract is specific as to the obligations of the parties. The concept of good faith can be applied in varying degrees and is hard to define.

Health and safety

These provisions reinforce the statutory obligations and go further to bring to the fore the health and safety aspects of the project. These place obligations on the contractor to comply with all approved codes of practice promulgated by the Health and Safety Executive, ensure induction training, staff have access to health and safety advice, and proper consultation. Larger companies generally have such systems in place however this contract applies to smaller works and smaller contractors in general.

Cost saving and value improvements

These provisions provide a mechanism for the contractor to propose changes to effect 'cost savings' and 'value improvements'. The key point for practitioners is that any such proposals need to be checked for compliance with the design and any change in design liability needs to be recorded. While most employers tend to have an appetite for cost savings these can often result in design issues not foreseen by the contractor. While the provisions clearly state that these savings are given through architects/contract administrators instructions there may be design issues not immediately apparent.

Sustainable development and environmental considerations

The contractor is similarly invited to suggest amendments to improve the environmental performance in the carrying out of the works or the completed works. Again the contractor needs to be well experienced in the type of project and recognise intentions in the project brief fully before making suggestions. Likewise the parties need to not lose sight of the design liabilities within the contractual framework.

Performance indicators and monitoring

This obligation requires the employer to monitor the contractors performance and contractor to respond with proposals where the contractors performance has fallen below targets set in the contract.

Notification and negotiation of disputes

These provisions involve the parties giving early notification of matters likely to develop into a dispute. The provisions involve senior executives from each side (as nominated in the contract particulars) meeting as soon as practicable for direct, good faith negotiations to resolve the matter.

Transparency

These provisions apply where the employer is a local or public authority or any body bound by the Freedom of Information Act 2000.

In essence the provisions state that the contractor consent to the employer publishing any amendments to the standard for JCT Contract in their entirety save for any information that is exempt from disclosure in accordance with the Freedom of information Act 2000. In addition there is an obligation on the employer to disclose any request to the contractor.

The Public Contracts Regulations 2015

These provisions apply where the employer is a local or public authority and is subject to The Public Contracts Regulations 2015.

Section 113(2)(c)(i) and (ii) that require compliance with the payment obligations towards subcontractors and requires inclusion of the same in subcontracts.

Clause 8.1 is the requirement on the contractor to supply details of works to be subcontracted and details of the same.