Category: Contracts

Design for use not abuse

According to data from World Commerce and Contracting, a mere 0.007% of contracts end in serious dispute (and even fewer end in tribunal proceedings). So why do we mostly draft contracts as tools for legal enforcement and not as tools for project management? And why do we take the same

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‘Cut and shut’ contracts

If you’re a driver, then you may be familiar with the phrase ‘cut & shut’ which refers to two write-off vehicles being welded together to make a ‘new and improved’ model. This happens with contracts. The clauses or halves might not have been write-offs but the resulting document is surely

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Mind your language… to avoid disputes

What are the best ways to avoid disputes on construction projects? You’d fully expect me to recommend a decent contract, but don’t just take my word for it. This post reviews the 2021 Arcadis Global Disputes Report to extract the nuggets you need to avoid disputes on your projects. Tips

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Using standard forms

Creating a contract on a standard form is relatively straightforward… isn’t it? Ms Wild bought a 1970s house in Cheshire and wanted to renovate it. Her professional drawn up specification envisaged that any contract would be on the RIBA Domestic Building Contract 2014 (a relatively short and simple building contract).

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Contracts need clarity

What happens when your contract lacks clarity? How will the English courts interpret it? In Mott MacDonald v Trant Engineering, the judge reminded contract writers and users of these principles by which they work out what your contract words actually mean: if the words are not ambiguous, then the courts

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Record it fully

The problem with being too focused on the deal, is that sometimes you don’t record what you think you have both agreed. In Donovan v Grainmarket (2021), the Court of Appeal said: the task of deciding what the parties had agreed was not easy [as] the parties’ contract was not

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Contracts that are fit for their purpose

What is the purpose or function of a contract? Is the focus legal or operational? According to research from World Commerce and Contracting, contract users defined at least 11 functions for contracts including: legal: a record of the parties rights and responsibilities; protection and remedies in the event of a

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What is a performance bond?

What is a performance bond? Despite its name, a performance bond doesn’t guarantee performance – the surety promises to pay up to a specific sum for some sort of contractor breach provided the employer gives it enough evidence. If you’d like an analogy, think of them as a type of

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Is it obvious? It is necessary?

Any contract – whatever its subject, however long it is, whether paper-based, digital or verbal – can have terms added to by either legislation, custom or by case law. These additions are called implied terms. This post summarises a recent Court of Appeal decision which clarified when/how the courts can

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