Blog

Key decisions on a construction project

A construction project can be divided into distinct phases. This blog reviews the key decision crunchpoints (see also my slideshare stages of a construction project). From the Start The project begins when a client considers she has a business need which may be met by developing new premises. Action: Investigate

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Cashflow and Carillion?

In 2013, you couldn’t fail to be aware of the debate going on in the media as a result of the announcement from Carillion that it was going to extend its payment terms for subcontractors to 120 days. Buy why does it matter so much? Cashflow is king As far

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Get your T&C signed

How can you make sure your terms and conditions (T&C) get into your contracts? Sometimes you’ll need to win the battle of the forms (read more), but a better approach is to get your contract/proposal/T&C signed in person or accepted by email. A lazy process? When you agree with another

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Is your letter of intent a contract?

There are five essentials for a contract: offer acceptance intention to create a contract consideration (the price or a promise) and certain & complete terms. A random bundle of letters will rarely be enough for a contract (the image is from Yorkshire Sculpture Park). Whether your letter of intent meets

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Review your bond: is it on demand?

Being the recipient of a bond is a little like being given a betting slip. The bond, of which you are now a proud owner, promises much. It may even be the key to huge wealth. Or, in the end, it may prove to be a worthless piece of paper.

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Can you avoid collateral warranties?

The definition of insanity, according to Albert Einstein is “doing the same thing over and over again and expecting different results.” This is how it feels to work with collateral warranties. Alternatives In my 20 years as a construction contracts lawyer, there were several ‘false dawns’ covering new approaches and

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Critical questions for reviewing collateral warranties

Warranties, in construction, are unusual documents. The two parties (the companies who sign the warranty) rarely meet and have little communication with and no control over each other. A warranty is: a contract entered into between a member of the project team (the warrantor) and a tenant, purchaser or funder

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Is possession really 9/10ths of the law?

This morning I ended up in a lively discussion over breakfast about who ‘owned’ Pooka, the cat in the photo. Our discussion was frivolous. But what about plant, materials, equipment or goods on a construction site? Then the debate really does matter. Who owns construction materials? There are two types

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Review your bond: does it need insolvency?

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. The precise rules for bringing a claim depend on the words of the bond itself. Getting paid under

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