My specialist area is construction contracts and my least favourite clause: the net contribution clause, beloved in warranties. Getting Your Contribution On a project in Edinburgh, the structural engineer provided a collateral warranty to a tenant (to allow the tenant to bring a claim if there were problems with the project). Structural defects ...
As I am a construction lawyer, you will forgive the occasional foray into my specialist subject for clauses of interest. In a collateral warranty for a leisure centre. Warrants, Acknowledges and Undertakes In a collateral warranty relating to the construction of a leisure centre, clause 1 stated: "The Contractor warrants, acknowledges and undertakes that:  ...
Ah, the perils of starting to talk jargon or legalese... and when to stop! I was browsing the CIOB Mini Form of Contract and came across a clause which struck me as badly written. What Does Vitiate Mean? The precise wording is: "no variations to the Contract work shall vitiate the Contract." Does anyone really ...
Do you ever stop to think about the length of your T&C? I was astonished to find that some of the standard forms used in the UK construction industry were very long: Given that 'Brave New World' is only 65,000 words and takes some getting through, surely we should be aiming for ...
A net contribution clause is common in appointments and collateral warranties on construction projects. It was the bane of my life as a lawyer! Sharing Losses with Contributions An architect had written his own appointment and included his own version of a net contribution clause, which stated: Our liability for loss or damage ...
As Ken Adams says in his blog on the Nexus Between Contracts and the Law, contracts cannot exist without the courts to interpret, intervene and implement their terms, including by: I have already explored the content for a contract in earlier blogs (eg What do You Need for a ...
The definition of insanity, according to Albert Einstein is “doing the same thing over and over again and expecting different results.” A bit like going round a maze! This is how it feels to work with collateral warranties. Two Alternatives In my 15 years as a construction contracts lawyer, there were several ‘false ...
What are Collateral Warranties? In the construction industry, warranties are unusual documents. The two parties to the warranty (the companies who sign the contract) rarely meet. The parties have little communication with or control over the other. My definition of a warranty is that it is a contract entered into between a member ...