JCT Contract, Major Project Construction Contract & Other Contracts, Conditions of Contract


Model Clause:

“25.1.3 an increase in the use of recycled and secondary aggregates {renumber existing clauses 25.1.3 and 25.1.4}”


Guidance on using this model clause:


If the JCT Major Project Construction Contract is used, the additional sub-clause shown above could be added to Clause 25.1.

The JCT Major Project Construction Contract includes a clause titled “Cost savings and value improvements”, as Clause 25. Clause 25.3 in the Major Project Construction Contract should be modified to allow different proportions of any agreed cost saving and value improvement financial benefit for the increased use of recycled and secondary aggregates.

The purpose of this clause is to encourage the Contractor to suggest amendments to the Employer’s Requirements, which, if implemented, would result in financial benefit to the Employer. This could be extended to cover the use of recycled and secondary aggregates. A clear financial benefit would be that aggregate produced on-site could displace imported primary aggregates, and therefore be Aggregate Levy exempt. Other matters, such as reduced off-site transport, while not necessarily having an obvious direct financial benefit, could have other benefits to the Employer to which a monetary value could be allocated in order to generate a cost saving, an agreed proportion of which will be passed to the Contractor.

The units for expressing the monetary value will depend on the method of monitoring most appropriate to the particular project. The basis for any payment would be improvements in sustainability over and above the position represented by target quantities, inserted by the drafter of the tender document.

ItemValue
Reduction in vehicles movements
30t wagons below {insert target}
£ {insert value} / load or
£ {insert value} / tonne
Reduction in depletion of local primary aggregate reserves {insert target}
£ {insert value} / tonne


Other JCT Contracts could include a “Cost saving and value improvements” clause similar to Clause 25 in the Major Project Construction Contract (as amended). This would need to be tailored to fit the particular Contract and would be inserted after the “variation” clause in the Contract. An appropriate inclusion, giving the proportion of any cost saving and value improvement financial benefit to be paid to the Contractor, would also need to be made in the Appendix.