What do you really need for a collateral warranty on a construction project? This post sets out the graveyard ie those clauses your warranty DOESN’T need. (tl;dr anything beyond a promise to comply with the underlying contract is probably unnecessary) Quality, copyright and insurance Most warranties go above and beyond
During my decades reviewing construction contracts, often the worst ones are subcontracts. These are the three ways in which they are abused. Dumping on your subcontractor Main contractors (through their contract terms) are guilty of some of these sins: making their subcontractors sign up to all sorts of nasties that
The annual ARCADIS Global Disputes Reports consistently link construction disputes with failures to: Administer the contract properly (i.e. run the project) Understand or comply with the contract’s obligations Use the procedures in the contract. If you create a letter of intent that is easy to read, easy to understand and
Like any contract, your letter of intent should accurately, briefly and concisely describe what the parties have agreed. Essentially, using a letter of intent means the parties have not agreed all the commercial aspects for the project, or all the legal terms for the full contract. The parties have agreed
The fundamental purpose of a letter of intent is to help you do business by getting your project underway quickly. There is a right way to start your project quickly and a wrong way. Why recycling is bad! Let’s assume you (acting for the paying party, whether that’s the developer/client
The City of London Law Society Standard Form of Letter of Intent combines four distinct categories: a record of the current state of negotiations on the intended ‘full’ contract a fall-back position if the full contract is never signed financial limits on the payer’s liability, and a simple contract for
Build UK has set out its list of six unacceptable terms for UK construction contracts: fitness for purpose – should not be included except in the process sector [where it is modified by testing and limits on liability] unquantifiable risks – certain items should not be a contractor risk where
In a 2022 case concerning a £154m energy from waste EPC (engineer, procure, construct) project the court had to review the relevant contemporaneous evidence and key legal documents. The court noted that the EPC contract and its schedules run to 7,259 pages. The Outotec subcontract is less complex at 564
A contract is a very serious matter… you can’t suggest people go and have fun once it’s signed. That’s me told… a senior lawyer admonished me in this way after reviewing an early edition of the 500-word contract (and its user guide). But you can have fun with contracts: consider
Contracting needs to be customer-centric, technology-friendly and process-conscious to succeed in the current tech age. Customer-centric Customer-centric contracts are ones which are simple to read, understand and use, and provided as part of a simple, clear process to convert a prospect into a raving fan! We all know the frustrations
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