We suggest that all works
are undertaken under the frame work of a formal contract,
at a minimum to include the simple Terms & Conditions
identified below. We are happy to discuss this with
you.
It is very unusual for there to be a requirement
for either party to enforce a Contract Clause, but the contract
conditions help to define both responsibilities to each other
and actually serves to maintain a positive relationship. It
is normal practice in most significant financial transactions
to have a contract and we, at Ian Alexander Limited, recognise
that building works are a very significant event and involve
considerable financial investment, for most people. As such
we find that Clients are happy to have the protection of a
simple contract as it provides "peace of mind".
DEFINITIONS
'CLIENT'
The person(s) and or company issuing
written instruction, to Ian Alexander Limited, to proceed
with contract works and variations.
'WORKS'
The instructed, defined and agreed
works.
'CONTRACT'
The offer by Ian Alexander Limited
and acceptance by the Client, for Ian Alexander limited
to undertake the agreed works for the agreed contract
sum, within the agreed timescales.
'CONTRACT SUM'
The agreed price for undertaking
and completing all instructed works, including an agreed
contingency.
'VARIATION'
Changes to the agreed scope of works
'UNFORSEEN ITEM'
Item of additional works which it
would have been unreasonable to expect Ian Alexander limited
to have identified in the works - for example the discovery
of pipework in the ground which has not been identified
on Statutory records.
'IAN ALEXANDER
LIMITED NOMINATED REPRESENTATIVE'
Managing Director of Ian Alexander
Limited or a person nominated (and identified in the Contract)
by Ian Alexander Limited.
'PRACTICAL COMPLETION'
Completion of all works other than
agreed and recorded "snagging".
'SNAGGING'
At Practical Completion the Client
will make a joint inspection of the works, with Ian Alexander
limited, and they will agree if there are any works which
need to be made good. The identified works will be recorded
and issued, by the Client, in writing, to Ian Alexander
Limited. Said list is known as the "snagging list.
'DEFECTS'
Any obvious fault in completed works,
such as failure in electrical equipment (excluding light
bulbs), plumbing or mechanical equipment or any obvious
defect in any of the building works. Does not include
non structural cracks caused as a result of natural shrinkage,
to plaster and other finishes. Damage to the works by
natural phenomenon or as a result of Force Majeure, damage
through negligence by the Client or occupants of the building
(where works were undertaken) or damage by others, are
not deemed a defect.
1. INSTRUCTION
We require a written instruction, from the Client, to proceed with the works for the agreed Contract Sum. ^
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2. VARIATION
2.1. All instruction should be made to Ian Alexander Limited's nominated representative only. Any other instruction, may not be recognised under the Terms of the Contract.
2.2. Prior to proceeding with the works the Client and Ian Alexander will agree a value of additional work for which a formal instruction is not required, but for which Ian Alexander Limited can make an executive decision to undertake in order to progress the works. The actual value of such individual variations is to be agreed (we suggest £100) and that the cumulative value of such variations does not exceed an agreed value (we suggest £500). All such instructions will be valued and reported in writing, retrospectively, to the Client. At such time that the cumulative threshold of £500 is exceeded then Ian Alexander Limited and the Client will review the overall financial implications. The Contract Sum will include an agreed contingency sum (say 10% of the value of known works) which is there to accommodate any unforeseen variations, such as the items that would be catered for under this clause.
2.3. Where Ian Alexander Limited identifies unforeseen works that will delay the works or require additional expenditure, by the Client, over an agreed value (we suggest £100) then Ian Alexander Limited will contact the Client for an instruction as to how to proceed.
2.4. If no written instruction is received within 7 days of a verbal instruction, from the Client, Ian Alexander Limited will write and confirm the instruction, to the Client and this confirmation will be accepted as a valid instruction, unless the Client writes, within 7 days, to notify that they do not accept the variation.
2.5. Where a variation is agreed and instructed an Extension of Time (an Extension to the Programme for the completion of the works) will, if appropriate, be agreed as part of the instructed variation. ^
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3. INSURANCES
Insurances for the works, unless otherwise agreed, are the responsibility of the Client
3.1. Ian Alexander Limited will provide proof of their Public Liability Insurance ^
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4. PAYMENT
Where applicable all payment to include VAT
4.1 On instruction to proceed with the Contract works we require a 10% deposit. Monthly payments, thereafter will be based on valuations of the works completed. Valuation of completed works to be agreed, with the client, before any invoice is submitted.
4.2 All invoices to be paid within 30 days of date of invoice. ^
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5. DETERMINATION
5.1. Contract can be determined by either party, giving two days notice.. Notice to determine contract must be made in writing and reasonable substantiation for the reason for determination, provided in support of the notice.
5.2. Either party shall be entitled to terminate this Contract without liability by giving notice at any time if::
5.2.1. either party is in material breach of any of its obligations under the contract
5.2.2. either party makes any voluntary arrangement with its creditors (within the meaning of the Insolvency Act 1986) or (being a company) becomes subject to an administration order or goes into liquidation whether compulsorily or voluntarily (otherwise than solely and bona fide for the purpose of amalgamation or reconstruction); or
5.2.3 an encumbrancer takes possession or a receiver is appointed of any of the property or assets of either party; or
5.2.4. either party ceases or threatens to cease to carry on with the contract other than for reasons defined in clause 7.0
5.3 All works completed and costs incurred by Ian Alexander Limited, prior to issue date of notice of determination, must be paid within 30 days of the issue of the notice to determine contract, unless works are identified by and independent construction professional, as defective. ^
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6. LAW
6.1. The construction validity and performance of this Contract shall be governed by the Laws of England and the parties submit to the jurisdiction of the English Courts. ^
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7. FORCE MAJEURE
Neither party shall be in breach of this Contract where any delay or inability to proceed with the works is caused by acts of God, a public enemy, fires, floods, explosions or other
7.1. If a Force Majeure Event shall occur and continue for a period exceeding seven (7) days the Parties shall consult together in good faith to determine what action shall be taken. ^
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8. DELAY
8. Should Ian Alexander Limited delay the works other than as a result of agreed variations then the Client would be entitled to seek reasonable recompense for the delay. Any financial compensation can only be applied if the compensation is agreed and identified in the Contract ^
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9. PRACTICAL COMPLETION
All snagging will be completed within 30 working days of Practical Completion, unless there is a reasonable reason for delay. The Final Account (the agreed Contract Sum, less the agreed contingency, plus any agreed variations) will be submitted on Practical Completion and an invoice for this value, less 5%, less any previous payments, will be submitted for payment in accordance with these Terms and Conditions.
9.1. When all snagging items are complete a final invoice will be submitted for the balance of monies due (the outstanding 5%). ^
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10. DEFECTS LIABILITY
Ian Alexander Limited warrants to remedy any defects for a period of 12 months from Practical Completion.
10.1. Ian Alexander Limited reserves the right to charge a call out charge of £120 (plus VAT) for all call outs or works which are not recognised as a defect, as defined above. ^
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11. DISPUTE RESOLUTION
In the event of a dispute that can not be settled amicably, both parties agree to seek to resolve the dispute through the process of arbitration as defined by the Royal Institute of Chartered Surveyors. The Arbitrator to be a Member of the Royal Institute of Chartered Surveyors. ^
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