Thedictionary

On this page is a scrollable list of relevant terms, together with a brief description.

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Accepted Programme	is the programme accepted by the project manager under the NEC contract.
Adjudication	a quick form of dispute resolution available, as a matter of law, to parties to a construction contract.
Bill of Quantities	a document comprising measured quantities with rates attached to each item to price up the works.
Bond	where a third party (surety) undertakes to answer to one party to a contract for the default of the other.
Completion	is when the contractor is considered to have fulfilled his obligations in relation to the works on site.
Concurrent delay	a period of delay for which there are two causes of equal causative potency.
Culpable delay	a period of delay in completion for which the contractor is responsible.
Dispute	an unadmitted claim which, in law, gives an arbitrator or adjudicator jurisdiction to decide upon it.
Disruption	the effect of works being carried out less efficiently than otherwise expected.
Domestic subcontractor	someone who the contractor has been free to choose to carry out part of their main works.
Due Date	is when a certain action is due. The term is more commonly associated with payments under contracts.
Employer	a term used to denote the client under a construction contract
Employer’s Agent	someone who the client appoints to manage a contract on their behalf.
Extension of time	relates to an extended period (essentially of grace) within which a contractor is required to complete its works.
Force majeure	an exceptional event that renders the contract impossible to perform for which neither party is responsible.
Global claim	a combined claim for a single sum in respect of multiple causes with little or no itemisation.
Hinder	a common law principle that a party cannot hinder the other party in performing the contract.
Impartiality	a principle whereby decisions should be made objectively without favour or bias.
Joint Contracts Tribunal	a body of member organisations responsible for maintaining the JCT contracts.
Key Performance Indicators	or KPI's, refer to a set of benchmarked criteria against which the performance of a party can be measured.
Liquidated damages	refers to a pre-agreed sum written into a contract that is payable for a specific breach of contract.
Material breach	refers to a breach of contract that has more than trivial implications on the innocent party.
NEC	the brand name of the New Engineering Contract and is widely used on public sector projects in the UK.
Named subcontractor	someone who the employer has named in the contract for the contractor to appoint as a subcontractor.
Net contribution clause	a clause which limits a party's liability to a just and equitable amount.
Nominated subcontractor	someone who the employer has chosen for the contractor to engage to carry out part of the main works.
Non-culpable delay	a period of delay in completion for which the contractor is not responsible.
Omission	refers to an element of work in the original agreed scope of works which is not subsequently required.
Pay Less Notice	a notice issued under a construction contract setting out a lesser sum to be paid than previously notified.
Payment Notice	a notice issued under a construction contract setting out what sum should be paid.
Prevention	a principle that a party to a contract cannot benefit from their own default.
Quantity surveyor	a person concerned primarily with the commercial aspects of a project.
Retention	refers to an amount that is retained from sums certified as due to a contractor from time to time.
Step in rights	rights for a third party to “step in” and replace one of the parties to a contract.
Termination	the bringing of certain obligations under the contract to an end.
Uberrimae fidei	a Latin phrase meaning of the “utmost good faith”
Vesting	refers to the transfer of title in materials and/or plant and machinery from the contractor to the employer.
Workmanship	the skill of a workman in the incorporation of materials in the permanent works.
X7	a secondary option in the NEC form of contract which incorporates delay damages.
Y(UK)2	an NEC secondary option to ensure the core payment provisions are Construction Act compliant.
Z clauses	are additional conditions of contract incorporated into the NEC standard form of contract.

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Construction Law