By David E. L. Janssens (auth.)
Looks at examples of the design-build agreement in operation to illustrate its utilization and structure. The BBC Headquarters is one instance the place the agreement avoided rate escalation, hold up and loss and price by means of the contractor with none detriment to the architectural freedom of design.
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EXTENSIONS OF TIME The grounds for extension of the contract period vary little between the JCT 1981 and the BPF/ACA forms of contract, and so we shall consider the two forms side-by-side. Contractors should beware of deletions which employers are accustomed to make. Employers on the other hand should recognise that the more risk to the contractor in the contract, the more contingency, or greater profit, he will allow. These extra costs become compounded because, not only do the subcontractors weigh up the risk and include appropriate contingencies, but the contractor compounds it by adding a percentage to the costs, in addition to including his own contingency.
This does not mean that he is guaranteeing to achieve a desired result. For example, a doctor does not guarantee to cure a patient, even if he is curable; a defending barrister does not guarantee acquital for his innocent client. They do not even guarantee to perform to the standard of an average practitioner of their profession. Unless the professional has entered into a more onerous contract, he is only legally liable when things go wrong, not just if the standard of his service was below the average which may be expected from the profession, but is so far below that standard that it could be regarded as being 'abnormal' or negligent.
1985) (xvii) Junior Books v Veitchi (1985) (xviii) Consultant's Group International v John Worman Ltd. (1985) (xix) Peabody Estates v Sir Lindsay Parkinson Ltd. (1985) (xx) Tai Hing Cotton Mill v Liu Chong Hing Bank (1986) (xxi) Yuen Kun Yeu v A G of Hong Kong (1987) (xxii) Greater Notts. Co-op. v Cementation (1988) (xxiii) Department of the Environment v Thos. Bates & Son (1987) (xxiv) D & F Estates v Church Commissioners (1988) (xxv) Pacific Associates v Baxter (1988) (xxvi) Portsea v Michael Brashier & Associates (1989) As the length of the list implies - and the list is not exhaustive - this is a complex topic which cannot be covered in any depth here.