Guernsey Contracts

Protecting all parties

Many in Guernsey’s construction industry have long recognised that they would benefit from a specific contract designed for local projects. So working with legal experts, Guernsey’s Construction Industry Forum has written its own. It will soon be available for anyone in the industry to download and use – and they hope there will be far-reaching benefits.

In recent years, Guernsey’s Construction Industry Forum (CIF) has been aware that the island needed a Guernsey-specific contract, following the withdrawal of a previous CIOB version that was no longer suitable for purpose.

Working with local law firm, Ferbrache & Farrell, they have rewritten the ‘Guernsey’ contract and, even more importantly, developed a comprehensive set of guidance notes to accompany it. The aim of the project has been for anybody to be able to read the notes and understand the purpose of the contract and how it can be used effectively.

The contract is designed to be used for all building works up to a value of £150,000. This can include both internal and external work, such as landscaping and paving, so they believe it will be suitable for the majority of local projects.

CIF recognises that traditionally a great deal of construction work has been undertaken in Guernsey without any written agreement, which can lead to a host of problems between the parties. According to Trading Standards and other bodies, the majority of issues that arise between contractors and clients are due to a lack of understanding and uncertainty around what the contracted work should actually entail.

The new contract has been designed to be easy to use and clear for those involved in the industry. It will also ensure greater thoroughness when it comes to both parties’ obligations. As an example, it will no longer be adequate to simply have a verbal assurance that insurance is in place – the contract requires that the other party sees the certificate and that its details are recorded in the contract. In a similar vein, the contractor should also see and record a copy of the client’s planning permission to undertake the works.

While the five-page contract is designed to be simple, the guidance notes are much more comprehensive – allowing both parties to understand what the contract is trying to achieve, and clearly outlining their responsibilities. CIF’s aim was that both contractor and client are protected through having a robust document that has been understood and correctly completed by all parties.

The new CIF contract clearly has similarities to other standardised contracts, but it is also very Guernseyspecific. The quirks of working in the island are clearly reflected, from bornements to the requirement to get a licence from the parish to close a road. The contract is also enforceable through Guernsey law.

CIF has undertaken a great deal of consultation in producing the contract, from detailed discussions with Trading Standards to speaking with many companies and individuals involved in the industry. Now they are confident they have a comprehensive contract suitable for all small to medium sized projects in the island, and one which protects all the parties.

While the contract provides legal protection for any wronged party in the case of a dispute, the hope is that it will actually help avoid legal conflict. CIF’s aim is to encourage both contractors and clients to get the project right from the outset. By recording all the facts and details of the relationship, they hope the contract will result in fewer disputes across the industry.

THE DETAILS

How to get it

The contract will be available to download from the Construction Industry Forum website: www.guernseycif.com

The cost

£20 to download both the contract and the guidance notes. The guidance notes can be read free of charge.

Who can use it

Anybody undertaking a construction project with a value of up to £150,000.

Who should complete it

It is important that contractor and client complete the contract together so they can ensure that both parties understand their responsibilities.

How long will it take

Completing the contract should only take around 15 minutes with both parties’ engagement.

CIF HAS UNDERTAKEN A GREAT DEAL OF CONSULTATION IN PRODUCING THE CONTRACT, FROM DETAILED DISCUSSIONS WITH TRADING STANDARDS TO SPEAKING WITH MANY COMPANIES AND INDIVIDUALS INVOLVED IN THE INDUSTRY