As my introductory post on IChemE sets out, there are some significant limits under the Red Book on the rights of the purchaser to recover losses. What can you do about it? This post considers the purchaser’s remedies. Remedies As the purchaser – either yourself or through the project manager
The role of the Project Manager under the Red Book is a balancing act (like any contract administrator). Firstly, they act as agent for the purchaser. The PM has full authority to act on behalf of the purchaser (with a few exceptions) and must act reasonably and in a timely
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: no express terms preventing an implied duty of good faith* long-term contract in context of a long-term business relationship parties intend to perform their roles with integrity and fidelity to the bargain parties are committed to collaborating in performing the
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 imlied 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
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