I am pricing a contract which has a list of "Tender Particulars" and I don't understand two of the items. It is not clear whether these two items refer to the main contractor or to me, the subcontractor
Liquidation & ascertained damages : £350/week Um ... Insurance requirements : £10M I hope £10M is for the main contractor cos I only have £2M insurance
Is this anything to do with DIY? No. Oh well ... maybe I should go and talk to uk.legal
Anna
~~ Anna Kettle, Suffolk, England |""""| ~ Lime plaster repairs / ^^ \ // Freehand modelling in lime: overmantels, pargeting etc |____|
Anna Regarding the insurance I would have thought that you should also have the same amount as the main contractor. If you are working as a sub-contractor to him then he could well ask for the same amount. Something you have to discuss Regarding the liquidated damages, the main contractor may well ask for it to be written into your contract but I can never see how it can work. Correct if it is you the sub contractor holds things up unreasonably and you alone delay the whole project then I am sure you would be liable but as you know it is usually a long combination of things, sub contractors and more likely the main contractor not keeping a tight enough control over the whole job. I always ask for that clause to be removed. If it wont be then usually I turn the contract down. Of course you may want the contract so you may have to agree to it. Your decision
Your contract should be with the main contractor and not their client, so should be written accordingly, that is only name them and not the client in any way.
You don't want to share liability with the main contractor to their client in any way, your obligation to fulfil the contract should be with the main contractor only.
The terms between you and the main contractor can be totally different to those between them and their client, the idea being they take responsibility for the overall project and it's insurance etc.
I would guess the insurance is for public liability, as you are working for them and not 'the public' their insurance should cover you I would expect, though it would be wise to check their insurance covers sub contractors.
You might also want a 'force majure' clause so that if you have an accident they cannot make a claim for not finishing the work.
If there is a lot of money at stake it might be worth getting the contract as good as you can yourself, then paying a suitable contract lawyer for an hour of their time.
Try posting on uk.consultants too, there will be a lot of advice similar to the above - I suppose you're a 'period plastering consultant.' :)
Have I got this right ...If I hold up the other building works then the main contractor will charge me £350/week. If I have, then I will indeed ask for it to be removed cos in conservation work it could easily be my trade which holds things up when a problem is found
OK
OK
JCT Minor works
JCT Minor works is a standard contract I think so hopefully all those wrinkles will have been sorted out. Its the first time I've come across a main contractor who wants to dot Is and cross Ts. Thats not normal in the building trade where it is generally assumed that hands on people can hardly read
I will find out more about the JCT Minor works contract to cover my back tho the risk of them suing me is low as they will need me in future more than I will need them. And also cos they are a reputable firm of long standing and hopefully have better things to do
I had a look at uk.legal and there were more than 10,000 posts to be downloaded so maybe uk.consultants will be less crowded
Thanks to you all for your help
Anna ~~ Anna Kettle, Suffolk, England |""""| ~ Lime plaster repairs / ^^ \ // Freehand modelling in lime: overmantels, pargeting etc |____|
If you fail to perform the contracted works within the agreed period of time then you may be subject for a claim against you. That does not been that the claim against you is valid, or you have to pay the fee mentioned.
There are numerous reasons [outside of your control] which may prevent you finishing on time. Extra and unforeseen work is one of them. Action or inaction of the main contractor is another.
Make sure you keep your own site diary, and copies of any instructions given to you. Notify potential delay causing events as soon as you become aware of them.
The idea of a standard form (i.e. the JCT contracts) is that clauses are not removed and added at will. You use the contract as is, or agree a more suitable standard form. If you start swapping and changing the clauses, then this can lead to ambiguity and conflicts with other clauses.
The flipside of liquidated damages is that they limit your liabilities. If you were to just strike out the LAD clauses, and then you were the cause of a delay, the main contractor could claim from you the actual resulting losses, which could be much more than the £350/week. If the delay was because more work was required than was originally contracted, then that would be a variation, which is likely to involve an extension of time.
HomeOwnersHub website is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.