JCT contracts suite

The Minor Works Building Contract comes in 2 forms:

• Minor Works Building Contract, 2016 (MW); and
• Minor Works Building Contract with contractor's design 2016 (MWD).

The Minor Works (MW) 2016 form is very popular but generally only suitable for small and relatively simple construction works. JCT no longer provides guidance on the maximum value of works that this contract is appropriate for, however, as a rough guide, this form was intended to be used for construction work up to approximately £150,000 in value (2010 prices), although they are often used for much larger projects.

The RICS contracts in use survey (2010) found that 24% of MW contracts were used for projects over £250,000. There is always a risk when such a simple form is used for large projects and you must be aware of this (e.g. insufficiency detailed provisions in respect of complex issues, i.e. extensions of time). This contract is essentially a lump-sum form of contract based on drawings and specification. It is not a re-measurement contract and requires an independent contract administrator.

One of the reasons for the extensive use of this contract is because of its apparent simplicity. The Minor Works Contract is, however, often misunderstood by users and there are numerous court cases involving this contract. The practitioner must, therefore, be aware that there is always a risk when such a simple form is used for large projects.

Contract selection

The Minor Works Contract is appropriate for construction works that:

• are simple and straightforward;
• the design is provided by the employer;
• are relatively modest in value; and
• are to be administered by an architect/contract administrator (CA).

Where minor and discrete design is required by the contractor (for example some minor/small mechanical or electrical works) then the MWD can be used. This is not a design and build contract, and there are no minimum professional indemnity insurance provisions in respect of those design works.

Contract price

The Minor Works Contract is a lump sum contract based on drawings/specification/schedules of work provided by the employer or his or her consultant. There is no re-measurement under this contract and variations are dealt with very simply by the contract administrator and contractor agreeing a price for such additional works. This price is to include for any loss and expense/claims related costs. If a price cannot be agreed on such extras, then the contract administrator can make a final decision on the matter (on a fair and reasonable basis) and the contractor will have to accept this. If the contractor is unhappy with the contract administrator's decision then he or she will have to take the matter to dispute resolution (which would normally be adjudication).

Contract set-up

A Minor Works Contract should have a structure along the following lines:

Collateral warranties

There is no provision in the Minor Works Contract for collateral warranties as in theory these projects are too small for this burden and furthermore there should not be an extensive chain of subcontractors.

Contract administration

As noted, the Minor Works Contract is deceptively simple. Much is left unsaid under this contract and numerous disputes have resulted. Care is, therefore, required even with this simple form and even more so if it is used for a larger project that may not be suited for such a simple contract.

For more details, see the isurv section JCT Minor Works Contract.