The retention is a separate 'pot' of money, which increases in line with the price paid to the contractor. Retention is the contractor's money which the employer kidnaps and holds to ransom until the end of the defects period. According to the 2017 BEIS research paper retention is "is a sum of ...
One of the contract traps for anyone providing construction works is a fitness for purpose obligation. This type of strict liability output obligation is rarely expressly included in a construction contract* (one of the arguments being that it is not covered by standard insurances). However... Fit for furpose Whenever I review design and ...
To work out whether works, goods or services are 'extra' ie a change to the original scope, you need to know the original scope of the works as well as how your contract defines changes/variations/extras. However, the definition of a change varies from pretty wide (eg JCT), to narrow (MF/1) to ...
The 2018 TSB online banking saga has once again highlighted the issue of wriggle room in contracts. Wriggling in court Before specialising in advising on contract strategy and writing/negotiating contracts, I had the pleasure of winning a case in the Court of Appeal. It involved what I call ‘advanced ...
In ‘The Four Agreements’ Don Miguel Ruiz introduces the wisdom of the Toltecs. Given the title and my specialism, my attention was hooked into how it related to contract law and contract negotiation. He says: “Language is the code for understanding and communication between humans. Every letter, every word in each ...
According to the NBS Contracts and Law Survey 2018, scope creep disrupted projects more than any other factor: Variations were also the main cause of 42% of disputes. So what can we do about scope creep? Are tighter variation clauses the answer? Watch this video to find out more....
Do your contracts demonstrate your honesty and trustworthiness? There are more than 50 ways to lose credibility and trust (read more) but if you want to be the right sort of company to do business with, read on. Read the full edition here » It’s snowing here, but it feels ...
In Stefania Passera's doctoral dissertation "Beyond the wall of contract text" she cites research that has shown that: Clear and implementable contract terms are crucial in building successful [business] relationships Well-structured and well-developed agreements foster better relations Long-term successful relationships require strengthened terms on communication, role clarification and mutual expectations ...