The term “minor works” refers to small, relatively simple construction projects that are typically worth less than £500,000. The RIBA DBC includes dispute prevention mechanisms, unlike the HO/O JCT. JCT commercial construction contracts contain a collaborative work clause (in the Additional Terms) as well as prompt notification and negotiation of matters that may give rise to a dispute. The RIBA DBC includes prior warning/joint resolution of delays, the obligation to hold a pre-start-up meeting, the promotion of the use of a risk matrix (sections 3.1-3.3) and the possibility of requiring the contractor to present a programme at this meeting (section 14). Two forms of “consumer” construction contracts designed specifically for domestic projects are being considered: the RIBA DBC, such as JCT MWD and JCT ICD, allows for the design of the prime contractor, although it should be noted that JCT MWD does not require the contractor to have IP insurance for this role. YCW HO/O requires the contractor to provide the work described in the documents that are part of the contract; There is no mention of the contractor doing the planning, nor the consequences that would result. It is therefore logical to limit the use of WTO/S to simpler projects without a contractor or subcontractor design. In particular, the term is used in reference to the contract for the construction of small works of the Joint Contracts Tribunal (JCT). This contract follows the traditional procurement route, where the design is first completed and then a contractor is hired to build the work. JCT does not set a value limit for the minor works contract, but is typically used for projects under £250,000. View and download our list of shorter contracts compared to national construction contracts The JCT IC and JCT ICD contracts allow subcontractors selected by the client, but not for the design which is part of the contractor`s design part in the JCT ICD, but the contractor is not responsible for the design of the subcontractors selected by the client, but only execution and timing. The RIBA DBC agreement is much less risky for the client as the contractor remains fully responsible for all aspects of its performance (clause 2.6).
JCT MW/MWD and JCT IC/ICD assume that payment is made monthly. For the RIBA DBC, the default setting is a monthly certification, but parties can specify another period (possibly every two weeks for small projects). The RIBA DBC also offers an option for a milestone agreement, where the contractor is only paid when predetermined portions of the work are completed. The JCT HO/O, which contains the simplest provisions, only allows a single payment at the end or in agreed phases, thus avoiding the provisions contained in all other forms regarding payment/payment without notice. Domestic projects, where a client may want to stay in the profession, often require a carefully planned phase and the ability to react to unexpected developments. The DBC RIBA allows work to be carried out in predefined sections with separate start and completion dates. It also allows the client to move the start date of one or all sections and occupy parts of the project before all work is completed. Unsurprisingly, the JCT HO/O contains none of these features, with only 11 pages, unlike the 32 pages of RIBA. These options are also missing in JCT MW/MWD. Apart from the RIBA DBC, only the much longer JCT IC/ICD offers these features.
More important than value in determining whether this is an appropriate form of contract is the type of project. Other standard forms of small construction contracts are available. The new engineering contract (NEC) stipulates that its contracts can be used for smaller works, and the Federation of Master Builders publishes a free set of smaller construction contracts. In addition, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 require all consumers to be provided with information on the right of withdrawal, including the procedure to be followed. If this is not foreseen, the statutory notice period of 14 days can be extended up to one year4 (a considerable risk for the entrepreneur). Both the RIBA DBC and the JCT HO/O include a withdrawal form, a convenient surcharge for retail customers and entrepreneurs. In cases where the consumer customer is also a “residential user”, the project is not subject to the Housing Subsidy, Building and Regeneration Act 1996 and the statutory jurisdiction does not apply.