Intl Stdt Ed-Top 20 by Vestri Solomon Staff

By Vestri Solomon Staff

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24 The provisions for a named sub-contractor under Schedule 2 paragraph 2 do not require that any particular form of sub-contract is used, nor that a warranty is obtained, nor that any particular provisions are included. 36). The employer may wish to stipulate in addition that specific terms are used for all named sub-contracts. 62). If the contractor should become insolvent and there is no warranty in place, the employer will not be able to recover its losses. 25 Clause 1·1 sets out definitions of terms that are used throughout the contract.

If no sum is inserted into the Contract Particulars, the contractor’s liability in respect of these matters will be unlimited. 9 If the employer wishes to impose a higher level of liability, this would require amendments to the form, which should be set out in the Employer’s Requirements. The employer would be unwise to make any such amendments without taking legal advice. It is interesting to note that both the GC/Works/1 and NEC3 forms contain optional ‘fitness for purpose’ liability clauses, which could serve as a useful starting point were such amendments required.

The Act allows obligations under an approved scheme to have effect instead of statutory obligations, and where this is indicated to be the case in the Employer’s Requirements then, under clause 2·17·2, the parties are required to do all things necessary for ‘a document or documents to be issued’ for the purposes of the approved scheme (in effect this means a National House-Building Council (NHBC) certificate). 8 The employer has an option to limit the contractor’s liability for the consequential losses arising from its failure to meet the design obligations, in addition to any liability for liquidated damages.

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