The IChemE Red Book is a lump sum contract setting out general conditions for the design and building of process plant. This post discusses some of the aspects you need to consider when choosing the Red Book as part of your contract strategy. Introducing the Red Book The Red Book
Is it enough to just cc people into emails and hold a few meetings so everyone is informed about progress? Short answer: no. Long answer, read on… Rubbing along together Although there is no overriding duty of good faith under English law (a limited duty appears in some relational contracts),
MF/1 is a balanced contract providing plenty of opportunities for the purchaser to check the performance of the works – through three series of tests – before the contractor is released from liability. It also clearly sets out limits on the contractor’s obligations. Limits on scope If you are acting
As my introductory blog on MF/1 sets out, there are some significant limits under MF/1 on the rights of the purchaser (client or employer) to recover losses. What can you do about it? This blog considers the purchaser’s remedies. Remedies As the purchaser, you – either yourself or through the
The Engineer’s role under MF/1 (like any contract administrator) is a balancing act. Firstly, they are an agent for the purchaser, as well as an employee. The engineer issues ‘certificates, decisions, instructions and orders’ (clause 2.1) but only as set out in the contract. The engineer’s authority derives from the
Relational contracts can be identified by looking for these characteristics: This list is NOT exhaustive. The only item which is determinative is the first! The court said that B2B (commercial contracts) can be relational contracts eg a private finance initiative contract, one with a long duration. If a contract is
In Post Office v Bates (2019), the court said that in relational contracts there are implied obligations of good faith: This means that the parties must refrain from conduct which in the relevant context would be regarded as commercial unacceptable by reasonable and honest people. An implied duty of good
Do you know your place? According to the English courts, the very idea that a sophisticated contract was negotiated with the host of a posh drinks reception at the Wallace Collection, London would have been ‘socially dysfunctional and commercially inappropriate‘. A company specialisting in advice for mergers and acquisitions (Moorgate
The Scottish Appeal Court (the Inner House) has confirmed my suspicion that a collateral warranty is impliedly limited by the scope and terms of the underlying agreement. What are collateral warranties? A collateral warranty is a simple document designed to create contractual links between the provider of goods, works or
If you don’t have a signed contract, you are creating trouble for yourself. To prove your rights and remedies, you will need to overcome various evidential hurdles to prove the 5 requirements for a contract. What happens when your carefully crafted contract is lost from a computer late at night,