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PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Call-off The practice, under a framework agreement, of instructing specific works to be carried out. Depending on the structure and terms of the framework agreement, call-off may require a contract to be entered into or may just require a call off notice to be given by the instructing party. See Practice Note: Framework agreements in construction—call-off procedures. CAR insurance See Contractor's all risk (CAR) insurance below. Category A fit out Interior fit out to a basic level on behalf of landlord/developers. It is difficult to define what this includes as it can vary a lot. There are, however, some guidelines, for example those published by the British Council for Offices. Category B fit out Interior fit out to a specified design on behalf of occupiers/owners. CDM co-ordinator Under the Construction (Design and Management) Regulations 2007, SI 2007/320, which dealt with all aspects of health and safety on construction projects,
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z D&B See Design and build below. DBO See Design, build and operate below. Date for completion/completion date The date set out in the building contract (usually in the contract particulars/contract data) for the completion of the works by the contractor—ie when the works are required to achieve practical completion by (see Practice Note: What is practical completion?). The date for completion might be adjusted during the project, for example if the contractor is awarded an extension of time. If the works are not completed by the date for completion, the contractor will be liable to the employer for liquidated damages (if these are specified in the contract) or otherwise general damages for late completion (for breach of contract). Date for possession The date, in the building contract, when the contractor is granted possession of the site by the employer so that it can commence construction of the works. Daywork rates Rates
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Early neutral evaluation Early neutral evaluation is a form of alternative dispute resolution whereby the parties invite a neutral third party to give an opinion on the merits of the case or particular aspects of the case. The evaluator will generally be a lawyer or an expert in the field. See Practice Note: Early Neutral Evaluation (ENE). Early warning The early warning process is a prominent feature of the NEC3/NEC4 suite of contracts, but the concept exists in some other standard form contracts too. Under the NEC4 ECC, the Contractor and Project Manager are required to give an early warning when they become aware of specified matters that could adversely affect price, time or performance, enabling the matter to be considered and managed proactively. For more information on the process in the context of NEC, see Practice Note: NEC—risk management (The early warning procedure). Egan report A report entitled ‘Rethinking
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Facilities management Facilities management contracting is essentially a commercial services contract arrangement, whether that be for 'Hard FM' (which relates to the maintenance and fabric of a building such as mechanical and electrical services), 'Soft FM' (which relates to support services within a building such as cleaning, security and helpdesking) or 'Total FM' (which may combine a number of hard and soft facilities management services). See subtopic: Facilities management for construction lawyers. Fédération Internationale des Ingénieurs-Conseils (FIDIC) The International Federation of Consulting Engineers. FIDIC publishes a range of standard form contracts for use on international construction projects. Use of the term 'FIDIC' often is a reference to this suite of contracts rather than the organisation itself. See subtopics: FIDIC contracts 2017 onwards and FIDIC contracts pre-2017 editions. Feed-in tariff The Feed-in tariff (FIT) scheme (sometimes called the Clean Energy Cashback scheme) was introduced in April 2010 as a way of encouraging
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z GC Works A family of construction contracts issued by the government (by what was then the Department of the Environment, Transport and the Regions) for public sector building and engineering works. They are no longer updated. General requirements Another name for project overhead costs, ie those essential costs incurred during the project which are not directly linked to construction activity (for example, the rental of the contractor's buildings and general support and supervisory staff costs). Global claim A global claim is one where a contractor has suffered loss caused by two or more different events which
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Hard FM Facilities management (FM) contracting is essentially a commercial services contract arrangement, and Hard FM covers services relating to the maintenance and fabric of a building such as landscaping, repairs and mechanical and electrical services. This is contrasted with Soft FM which relates to support services within a building such as cleaning, security and helpdesking. See subtopic: Facilities management for construction lawyers. Head contract This term is used to describe the contract between a contractor and an employer for the entirety of the works, when some of the works are being sub-contracted out by the contractor. It is commonly referred to as the head or main contract, which distinguishes it from the sub-contracts. Head
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z ICC This can refer to the Infrastructure Conditions of Contract (see below) or the International Chamber of Commerce (see below). ICE See Institution of Civil Engineers below. ICT contract In PFI/PPP projects which have a complex Information Communications Technology (ICT) component (such as a school), there will be a separate ICT contract between the Project Co and an ICT contractor for the delivery of ICT services and/or infrastructure. See Practice Note: Key documents in a PFI/PF2 project. IFC See Issued for construction below. Implied term A term which is imported into a contract, in addition to those expressly agreed by the parties. There are three broad categories of implied terms—those implied by statute, by common law and by fact. See Practice Note: Implied terms in construction contracts. Incoterms An abbreviation of 'International Commercial Terms'—a set of globally recognised terms and conditions used in international, and sometimes domestic, contracts for the sale and purchase of goods.
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z JCT
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Key date This phrase is sometimes used in a construction contract to
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z LADs See Liquidated and ascertained damages (LADs or LDs). Late Payment of Commercial Debts (Interest) Act 1998 The Late Payment of Commercial Debts (Interest) Act 1998 creates a statutory entitlement to claim interest on overdue payments. See Practice Notes: Remedies for non-payment under construction contracts and Late Payment of Commercial Debts (Interest) Act 1998. Latent defects Defects inherent in the design or construction of a property which are not apparent on inspection. See Practice Note: Latent defects. Latent defects insurance Insurance which covers damage to a property caused by latent defects which become apparent during the life of the policy. Latent defects insurance normally lasts for 10 or 12 years from practical completion and is taken out on the
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z M&E Mechanical and electrical. Main contractor On a project where some of the work is sub-contracted, the main contractor (sometimes also referred to as the head or lead contractor) is the party which enters into a contract with the employer and is ultimately responsible for carrying out the works. The main contractor then sub-contracts some or all of the works to its sub-contractors. Maintenance period The period following practical completion during which the contractor is required to return to site to make good any defects which arise or which are discovered during that period. It is similar to 'rectification period' or 'defects liability period', but
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Named sub-contractor A sub-contractor who is named by the employer in the specification or employer's requirements. The contractor bears the risk of the named sub-contractor's procurement and design (in contrast with the position in relation to nominated sub-contractors). See Practice Note: Sub-contracting in construction projects (Types of sub-contractors). NEC3/NEC4 The NEC contracts promote a collaborative approach and are suitable for procuring a range of works. The NEC3 suite was published in 2005—and a further edition followed in 2013. The NEC4 suite