JCT Intermediate Building Contract 2011 - what's new?

The contractor’s right of suspension, in the event that the employer fails to make payment by the final date for payment, continues (clause 4.13).

The 2009 Act bolstered the effectiveness of the contractor’s right to suspend work where payments are unlawfully withheld. Where the statutory right to suspend work is exercised, the defaulting employer will now be liable to pay to the party exercising the right a reasonable amount in respect of costs and expenses reasonably incurred by that party as a result of the exercise of the right: Construction Act 1996, s. 112(3A).

The IBC has consequently been amended to reflect this:

• The contractual right to a reasonable amount in respect of costs and expenses incurred as a result of exercising the right is contained in clause 4.13.2.
• In order to claim such costs and expenses the contractor must make an application to the architect or contract administrator (clause 4.13.3).
• The certifiable amount that is due to the contractor will include any such costs and expenses incurred (clause 4.8.2).