This blog follows from a workshop I ran for a subcontractor company. We were looking in detail at performance bonds and parent company guarantees on construction projects. These contracts often contain so-called 'indulgence clauses.' No Variation Discharges the Bond This indulgence clause was considered by the Court of Appeal in Hackney v ...
In deciding whether a clause is harmful (OFT) or unfair, a tribunal will consider whether your contract partner had a choice to accept or avoid a particular term. Many years ago, a highly influential judge, Lord Denning, said: "None of you nowadays will remember the trouble we had - when I ...
When is an offer not an offer but the award of a contract? When its a snake in the grass? The TCC recently has to grapple with the rights of the parties under a framework agreement, in unusual circumstances. A framework agreement normally allows an employer to instruct a contractor to carry ...
When could you be liable for a drop in the market value of a development you have worked on? In uncertain economic times, you need to know your exposure. A Normal Story of Developing Homes A developer (Gubbins) appointed an engineering firm (Grimes) for a housing development. Grimes agreed to design a ...
If you have to compensate someone for injuries caused when part of your property falls onto them, you may need to pass that loss to others. This article looks at a recent case to discover who was liable. A family were seriously injured in June 2007 when a concrete shopfront and ...
This morning I ended up in a lively discussion over breakfast about who 'owned' the cat in the photo. Apparently, when we had first agreed to adopt this cat, I had said to middle son that she would be his cat. But I feed her, clear up after her, take her ...
How to Bonds Work? A bond is a contract which allows the recipient (the employer) to bring a claim against the bondsman (a bank or insurance company) if a 'trigger event' occurs during the construction project. They often expire at practical completion of the works and are limited to claims up ...