One of the respondents to my survey on the future of contracts told me (rather depressingly) that No-one cares about the contract. They just want the goods… But it is actually more nuanced. There are two different motives for two distinct stages: before signature: the parties are only focused on
The scandal of construction, according to the Huxtable Report (1983) is: the persistent and continuing imposition as a matter of deliberate policy… of onerous and unfair subcontract conditions. An ideal subcontract, said the Report, was which set out the rights and obligations of the subcontractor as clearly as possible, was
The 2020 pandemic is increasing the speed of digital change in construction. At a LetsBuild webinar two-thirds of respondents said that the pandemic would accelerate increased digitalisation and investment in technology. As ‘Digital by Default: Construction After Covid-19‘ notes: …rapid change is the reality of the current COVID-19 crisis –
In the light of the Covid-19 pandemic, parties have been burrowing into the depths of their small print like never before. I am not convinced this is the answer. For once, I am NOT alone! The UK government has issued guidance for parties to public sector contracts (PPN 02/2020) and
I have been researching how other countries are adapting to digital contracting. In Sweden, Skye Contracts promote contracting based on: speed simplicity flow They are interested in tremendous templates, clarity of thinking, data-driven decision-making as well as using processes that work for your business. As they state in their e-book:
Let’s be clear, taking a contract that is not fit for purpose and digitising it will not magically create a smooth, effective contracting process. It is not about the technology. Digital contracts are legal. But they also need to be simple – contracts should be read, understood and used. Online
Although most contracts do not need to be signed to be effective (and legally binding), guarantees are an exception. The 1677 Statute of Frauds requires all guarantees to be: in writing (or a note of memo of it is in writing) signed by the guarantor. This distinction means oral guarantees
Rather than blinding leaping onto the digital bandwagon, STOP! Let’s consider if you are ready for or even need digital contracts. I’ve been speaking to Mo Shana’a from Morta regarding questions he asks a company to see if they are motivated to change their current ways of working. Imposed changes
There is no specific format for contracts under English law. They can be verbal, written or in any other format. Five essentials A hasty scribble on a serviette can form a legally-binding contract, providing it covers the five essential elements (English law): Offer to do something Acceptance of that offer
Cashflow is King. Yet getting paid is a perennial problem across all projects, sectors and countries. But do you know how bad it really is? Global data According to the IACCM 2015 Report Payment Terms: Do Large Companies Abuse their Power?: 51% companies find that negotiating payment terms is becoming
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