The Confederation of Construction Specialists (CCS) has praised and
criticised Bovis Lend Lease's amended standard form of subcontract
in equal measures.
In its latest review, the CCS said of the 195-page DOM/2 1981 form:
"Bovis has mixed adversarial and collaborative clauses together and
then denied the subcontractor the right to obtain the commercial
benefits of being a collaborative contractor."
The form is "cleverly drafted and contains several good
provisions", notably passing on relief from performance provisions
from the main contract to the subcontract in a
proportionate manner.
The CCS also praised the "excellent design approval procedure that
should be classified as contractual best practice and used by
clients and companies working on other complex construction
projects".
Furthermore the CCS describes the independent
adjudication procedure as fair and reasonable.
However, the CCS noted: "The worst contractual and commercial
aspects of this subcontract are the imposition upon the
subcontractor of all obligations, warranties, indemnities, duties,
risks, responsibilities, undertakings, and liabilities under both
the main and subcontracts and the use of a limitation of liability
clause that does not provide any contractual limits.
"There are also too many pre-condition of payment
subclauses."
Marked against the Construction Act, the CCS gave Bovis's form a
score of 56%. It was marked down for payment (final date increased
from 21 days to 31 days) and notice periods (reduced from five days
to two).
A Bovis spokesman said: "This is not a standard contract; it's
project-specific. The terms and conditions reflect the terms and
conditions set out for Bovis by the client. It's established
industry practice to pass risk on from the main contractor to
the subcontractors."