54 Standard Forms of Contract I

Wfaat the contract says about quality

indicated above, the management approach does not anticipate design liability lying with the
Management contractor. Design liability in general remains with the professional team and is not
passed to the management contractor under die management contract.
Clause 3.1 includes provisions with regard to the employment upon the jf" project by the
management contractor of named persons as set out in the second schedule to the contract
consent from the architect is required to any Changes to that schedule.
Detailed control mechanisms are included in Clauses 3.3, 3.4 and 3.5 dealing with
instructions from the Architect so as to enable the management contractor to properly carry out
the services that he has agreed to carry out as part of this management function.
Under Clause 3.7 the architect determines any levels which may be required but the
management contractor is responsible for setting-out.
Under Clause 3.8 die obligation on die management contractor is that all goods and materials
shall (so far as procurable) be of the respective kind and standards specified in the project
specification, or as may be required in the specification or bill of quantities in any works
contract. Workmanship should be of the standard described in the project specification.
Clause 3.11 provides detailed provision with regard to work or materials not in accordance
with the contract and derailed provisions setting out die particular procedure to be adopted with
reference to die Code of Practice (the same Code of Practice which is referred to in many JCT
contracts) is set out.
For control of uie works contractors the management contractor's obligations in respect of die
employer (und the Employer's obligations in respect of the management contractor) are fully set
out in Clause 3.21. Alleged breaches by the management contractor or by the works contractors
are subject to explicit provisions in Clause 2.21. Ultimately, notwithstanding compliance by the
management contractor with the works contract and the management contract, if die
management contractor is not fully reimbursed by the works contractor then die employer shall
pay to die management contractor the amount of any shortfall. Likewise with regard to claims
against the management contractor by a works contractor the management contractor is entitled
to complete reimbursement of the costs of setding or defending any such claim subject only to
not being entided to be reimbursed for costs direcdy arising out of the management contractor's
breach.
The importance of understanding issues of liability between die management contractor and the
works contractors cannot be overemphasised. Clause 1.7 of the management contract states that
the liability of the management contractor for any breach of the management contract includes
any breach occasioned by the breach of any works contractor is expressly subject to Clause 3.21.
This is of critical importance in understanding the precise and limited nature of die management
contractor's risks and liability.