1. Works Contract Under Gst

Common features & terminology of the JCT Minor Works Building Contract Contract conditionsThere is a contract between the employer and the contractor with standard contract conditions that include information such as the contract period and contract sum. The worksThe works are set out in the contract documents which typically include a specification and sometimes drawings.

Variations to the worksThe contract administrator or architect can instruct changes to the works on behalf of the employer using a contract instruction. The variation may add to the works or take out part of the work originally specified.If a variation involves a significant amount of extra work, the contractor will be entitled to additional time. The contract administrator is responsible for assessing the value of additions and omissions.If employers give instructions directly to the contractor, this is outside the scope of the contract so it is important that employers ensure all instructions go through the contract administrator. Contract administratorThe contract allows for a contract administrator or architect whose role is to administer the contract. Their duties include:. Carrying out periodic site inspections of work in progress. This is not the same as ‘supervision of the works’, which implies a greater level of on-site presence.

The contractor must supervise his own works. If the employer requires a greater level of supervision, a clerk of works could carry out this role. Issuing instructions on behalf of the employer for any variations to the contract such as additional work or points of clarification. Assessing the value of the work for interim stage payments and issuing certificates of payment.Even though contracted by the employer, the contract administrator must be independent and objective. This is particularly important when assessing the value of the works, dealing with any claims from the contractor, determining the works’ completion date and resolving any disputes that may arise under the contract.

Interim paymentsThe contractor receives interim payments on a monthly basis for works he has carried out (not in advance or on account) and the contract administrator assesses the value of payments. If he doesn’t receive payment on time, the contractor can stop works and may be able to claim for losses. Retention moniesThe contract allows for the retention of interim payments normally in the region of 5% and reducing to 2.5% on completion of the works. So, if the value of works at an interim payment are assessed at £10,000 then 5% £500 is held back. Defects rectification periodThere is a rectification period, normally six months, during which the contractor must return and attend to any defects that arise in the works. Retention monies are held until the end of this period.

Contract periodThe contract period states how long the contractor has to complete the works. That said, if the contract administrator instructs additional work as a variation, either to suit the employer’s needs or because additional repairs cause the work to increase, then the contractor can have more time.There may be other reasons for an extension of time, for example, delays due to exceptionally bad weather. Nazar nazar mein song download.

Works Contract Under Gst

The contract administrator will assess this. Provisional sumsWhen the designer is preparing the specification, the full extent of works may not be known so they may include provisional sums or provisional items.A provisional sum is a financial cost that the designer reasonably expects to be incurred.A provisional item is a description of the works with an estimated quantity or area that the contractor can price. This would then be re-measured for the contractor and the contract administrator to agree between them.

Liquidated damagesThe contract allows for payment of liquidated damages if the works are not completed on time and if the contract administrator has not granted an extension of time.At the outset, you need to agree the amount of liquidated damages. They are not intended to be punitive but to reimburse the employer for their loss. However, there are defences for contractors, and if liquidated damages come into play, it can lead to a dispute. Contractor’s designThe contractor may have a design responsibility, such as designing electrical installations. There is provision for a JCT Contract with contractor’s design and in this case the design element needs to be clear. Termination of the worksThe contract sets out provisions for suspending or terminating either all or part of the works.

What should an employer consider when carrying out works?If the works are taking place in your home, you should inform your buildings insurance as most policies require this.You should also consider that the contractor may need to use services, for example, electricity and water. Use of a toilet and washing facilities come under site welfare. It needs to be clear at the outset if these services and facilities are not available so the contractor can price the works appropriately.As an employer, you have an obligation to provide access so the contractor can carry out the work. If access is denied, the contractor may be able to make a financial claim for losses.Contractors must have an up-to-date public liability policy covering death or injury to people and damage to property.

The contractor should also have insurance to cover the cost of any damage to the work while it is being done and for building materials on the premises used in the work.

JCT Minor Works ContractsThe JCT Minor Works Building Contract is designed for smaller, basic construction projects where the work is of a simple nature. Minor Works Building Contracts are suitable for projects procured via the traditional or conventional method.

They are normally administered by the architect or a contract administrator.The employer is responsible for the design, and this is usually supplied to the contractor by the architect or design team working on the employer’s behalf. If the appointed contractor is to be responsible for designing specific parts of the works, then a Minor Works Building Contract with contractor’s design must be used.The employer (through its advisers) will also need to provide drawings, a specification, or work schedules to specify the quantity and quality of work at tender stage. When using the Minor Works Building Contract with contractor’s design, the employer must also detail the requirements for the parts of the works that the contractor is to be responsible for designing.The Minor Works Building Contract is not suitable where the project is complex enough to require bills of quantities, detailed control procedures, or provisions to govern work carried out by named specialists.