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 ...
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 ...
What is Retention? The retention is a separate 'pot' of money, which increases in line with the price paid to the contractor. It is generally 3-5% of the price. It is deducted from the money due to the contractor and held by the employer. What is it for? Many employers assume that the ...