An arbitration clause should be present in every builder's contract. With out it, he is practically helpless when dealing with an architect upon whom he depends for his certificates and his payments, and whom he finds rt impossible to satisfy by reasonable means. The clause regulating payment is most important. Usually, 20 to 25 per cent. is deducted from all payments on account, until the total amount deducted is reasonably sufficient as security to the employers ; the larger the amount of the contract, the less should be pro portionately the total amount retained as a deduction for security.
Short Form of Building Contract.
Agreement made the 9th day of July 1910. Between FITZROY MILD MAY, of 83 Portman Square, in the County of London, Esquire (hereinafter called " the owner "), of the one part, and HENRY MASON, of 12 Queen Victoria Street, in the City of London, Builder and Contractor (hereinafter called " the builder "), of the other part.
Witneaseth that, in consideration of the sum of Five thousand pounds, to be paid to the builder by the owner, at the times and in the manner hereinafter set forth, the builder will, upon the plot of land known as Betty Harding's Meadow, in the parish of Combmartin, in the county of Devon, and which is more particu larly delineated in the map or plan thereof indorsed hereon, execute and complete the works shown upon the drawings and specification attached hereto, and marked " A " and " B " respectively, and signed by the parties hereto.
1. The builder shall be put in possession of the site on the 10th day of July 1910, whereupon he shall forthwith begin the works, and shall complete the same (except painting and papering, or such other work as the architect may deem it desirable to delay) by the 10th day of July 1911, subject, nevertheless, to the provisions of clause 12.
2. The builder is to provide all things needful for the due execution of the works, according to the drawings and specifications taken together in their true meaning, and according to the meaning reasonably to be inferred therefrom, and if there shall be any discrepancy between the drawings and specification, the same shall be referred to the architect, whose decision shall be final and followed.
3. The builder shall execute the works according to the directions and to the reasonable satisfaction of the architect, in accordance with the said drawings and specification, and in accordance with such further drawings and directions in explanation thereof as may from time to time be furnished by the architect. If
such further drawings or directions are in the opinion of the builder in excess of the works contemplated by this contract, he shall before proceeding with such extra work give notice in writing to this effect to the architect. In the event of disagreement between the architect and builder hereon the builder shall, if required, proceed with the extra work, and the question in dispute, and the amount of extra remuneration, if any, shall be referred to an arbitrator.
4. The builder shall set out the works, and during their progress amend at his own costs any errors arising thereout, unless the architect shall not so require. And all materials and workmanship shall be to the satisfaction of the architect and of the respective kinds described in the specification.
5. The builder shall conform to all statutes and all regulations and bye-laws of any authority which shall have the effect of law, and which shall relate to the works, and shall duly give all notices and pay all fees thereby required.
6. The builder will keep a foreman constantly on the works, and any directions given by the architect to such foreman shall be held to have been given to the builder, who will also, on request of the architect, immediately dismiss and not re-employ any person employed thereon who, in the opinion of the architect, is incompetent or misconducts himself.
7. The architect shall at all reasonable times have access to the works, and to any workshop of the builder or other places where any part of the works is being executed.
8. The clerk of the works shall be under the absolute control of the architect, and he shall be afforded every facility for examining the works and materials.
9. The architect shall have full power to order the removal from the works of any materials which in his opinion are not in accordance with the specification, the substitution of proper materials, and the removal and proper re-execution of any part of the works not executed in accordance with the drawings and specification, and the builder shall comply with such order at his own cost. In default, the owner may employ and pay other persons to execute the same, and all costs thereof shall be paid by the builder, and shall be recoverable from him by the owner, or deducted from any moneys duo, or to become duo, to the builder.