Category: STAR

What You Need to Know About Getting Paid

Cashflow is King. Yet getting paid is a perennial problem across all projects, sectors and countries. But do you know how bad it really is? Global data According to the IACCM 2015 Report Payment Terms: Do Large Companies Abuse their Power?: 51% companies find that negotiating payment terms is becoming

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What Does Co-operation Really Mean?

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),

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Limits on the Contractor’s Liability under MF/1

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

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Good Relations

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

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What is Good Faith?

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

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Limited guarantees

The Scottish appeal court has recently agreed with something I have been asserting for years, that a collateral warranty is impliedly limited by the scope and terms of the underlying agreement. What is a warranty? A warranty is a simple document designed to create contractual links between the provider of

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What is quantum meruit?

A claim for a reasonable sum (literally ‘the amount he deserves‘) is available either under an incomplete contract or on the principle of restitution or unjust enrichment in equity. Claims in contract Where there is a contract, quantum meruit applies where: no sum is agreed for the scope set out

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Contracts Create Disputes

The Global Construction Disputes Report 2019 (by Arcadis) confirms that failure to understand or comply with the contract is the number one cause of disputes globally. Professor Renato Nazzini, in his guest foreword says: It would be tempting to look for solutions in ever more complex, more detailed contractual documents

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What No Retention?

Retention has had its day… Unjustified late and non-payment of a retention is unacceptable BEIS Report October 2017 Or perhaps that is wishful thinking? Build UK is implementing the Construction Supply Chain Payment Charter to move to zero retentions by 2025 (although some more enlightened employers like Network Rail have

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Can You Recover Delay Damages After Termination?

Construction contracts and engineering contracts take a flexible approach to completion: time is not of the essence (if they were, then when the contractor was late the client could reject the works, plant or section and pay nothing) the original dates for completion of the work, plant or sections can

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