Most UK construction projects are carried out on standard form contracts which set out specific events which can entitle one or other of the contracting parties to a range of remedies: an adjustment or extension to the planned completion date more money either for carrying out additional works or for
A contract is a legally binding agreement that creates mutual rights and obligations on the contracting parties. A contract not only obliges the contractor to provide specific works or services but also gives the contractor a right to finish those works or services. There are two mechanisms by which contracts
What does your contract mean? Perhaps not what you intended… Words vs Purpose The courts interpret contracts based on examining each word (the literal approach focusing on language) and business common sense (the ‘purposive’ approach focusing on practical implications). Although language should be the surest guide as to what the
According to a Brief History of Cunning (podcast), Machiavelli said: one must be a fox to recognise traps and a lion to recognise wolves This struck a chord because as a contracts expert, one of my services is to review contracts on behalf of contractor and specialist subcontractors to identify
To work out whether works, goods or services are ‘extra’ ie a change to the original scope, you need to know (1) the extent of the original scope as well as (2) how your contract defines changes/variations/extras – this can be pretty wide (eg JCT), narrow (MF/1), or non-existent (NEC).
Most contracts will include some form of mechanism or procedure allowing the parties to change the goods, works and services being provided. There are a number of myths about variation clauses because a simple express clause such as this in NEC4 “The Project Manager may give an instruction which changes
5 years ago I wrote a post about whether you could trust an employer with your retention. In the light of Carillion’s pending/actual insolvency* (delete according to when you read this), I wanted to clarify the legal position on retention. For simplicity the employer refers to the paying party –
How bad are letters of intent really? A real eye-opener activity, which I have used during my LOI lunch & learn workshops, is to compare what is in a ‘standard’ letter of intent with what you’d expect to see in a proper construction contract. Letters of intent should be contracts.
The UK Supreme Court have recently revisited the thorny issue of fitness for purpose (and millions of Euros depend on the answer). How can you avoid the embarrassment of publication riches afforded by a Supreme Court decision, as well as months in court (the decision was given 8 years after
Showstoppers are A clause or term that could bring negotiations or your contract to a juddering halt Over the past 9 months, my newsletters have proposed a series of tips, tools and techniques to spot and solve showstoppers. What should you do? Do you work with or for your clients?