A minor works agreement is a document used for simple and basic construction works. It ensures that the instructions of the client about a construction project will be followed and that the rights of the contractor will be protected. By signing a minor works agreement, the contractor agrees to do a construction project following the terms of the agreement while the client guarantees that he will pay the contract price based on the agreed schedule of payment.
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A Statement of Work is typically annexed to a minor works agreement to explain in detail how the client wants the work to be performed. To prevent misunderstandings, the client must state in the minor works agreement and the Statement of Work all specifications and instructions for the building or construction project. Other documents such as Specifications and Approved Plans may also be annexed to the minor works agreement to provide more details about the project.
A minor works agreement should only be used for small-scale construction works. To know if a construction work is considered small-scale or minor, you must consider different factors such as the simplicity of the work, the total construction cost, the period of completion, and whether the help of a specialist will be required.
For example, you could use a minor works agreement when a construction project only involves the installation of an electrical wiring system in a small house. However, a minor works agreement would not be appropriate for a project that involves the construction of a building.
A minor works agreement is necessary for the efficient completion of basic minor construction projects. It serves as proof of the terms agreed upon by the parties. It outlines the obligations of both parties as well as the conditions that they must follow. A minor works agreement can also be used by the client to provide instructions and specifications about the performance of the construction works. It lessens the risk of having disputes because miscommunications and misunderstandings about the terms of the contract are prevented.
Participating Banks that have a licence to use the MDB Harmonised Construction Contract General Conditions aim to make the General Conditions available in their standard bidding documents. Some Participating Banks ask users to obtain their own copies of the General Conditions from FIDIC. FIDIC therefore makes available by download an electronic version in PDF of the fully formatted General Conditions. FIDIC only guarantees the accuracy of these General Conditions to those who download the PDF file from FIDIC.org. As a service to users, FIDIC also publishes a complete Conditions of Contract comprising the General Conditions and suggested sample forms that can be used in Particular Conditions. FIDIC makes the complete, fully formatted contact available in both printed and electronic (PDF) versions from the FIDIC Bookshop. Currently on the latest (June 2010) version is available as a printed document. The electronic version of the complete contract has fully authenticated General Conditions that are encrypted by FIDIC. For the latest version of the General Conditions (June 2010), both printed and electronic versions of the complete, fully formated Conditions of Contract is available from the FIDIC Bookshop. For earlier (May 2005 and March 2006) only electronic version are available.
The JCT Minor Works Contract is drafted to suit simpler projects. One version of the JCT Minor Works Contract contains provisions allowing for the contractor to design part of the works, and the other version places all design responsibility with the developer. The JCT Minor Works Contract is typically used for projects like retail fit outs or extensions to commercial property but there is no hard and fast rule limiting its use to a particular size or value of construction project.
The most important changes relates to Option C, which is one of the insurance options in the JCT contracts. Option C is used in the case of alterations of or extensions to existing structures and this provides for the developer of a project to insure both the works and existing structures to the works do not apply. However, the 2016 JCT forms have been amended to allow alternative solutions for existing structures to be adopted.
It is extremely important to seek legal advice before entering into any form of building contract. The implications of not properly documenting construction works can result in parties not understanding the risk they are taking on and the implications they may face if something goes wrong. Many problems (and even potential litigation) can be avoided by ensuring that the necessary contracts are carefully drafted at the outset. 2ff7e9595c
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