Category: STAR

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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Review Your Contract: Trust

A few years ago, I was speaking to an audience at an RICS event and someone asked how he should proceed to write a contract if he didn’t trust ‘them’ (also known as ‘the other side’). I was momentarily stunned into silence – a rare and unusual occurrence for me!

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Excluded Claims

There are a number of ways of responding to possible risks events: one option is to exclude your responsibility (or liability) for specific types of claims or specific categories of losses. These terms which give effect to that option are ‘exclusion’ clauses (also known as exemption clauses). The Court of

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Who bears the risk?

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

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Beware Unfortunate Consequences

If the other contracting party is in breach, you can can bring a claim for damages to put you in the position you would have been in had the other performed its duties under the contract correctly. Under English law, damages (or compensation) can only be recovered if they are

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Can You Trust the Employer with Your Retention Money?

The retention is a separate ‘pot’ of money, which increases in line with the price paid to the contractor. Retention is the contractor’s money which the employer kidnaps and holds to ransom until the end of the defects period. According to the 2017 BEIS research paper retention is “is a

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The Dotted Line: Expect the unexpected…

Serendipity… when you open your book on a crisp autumn Sunday morning (A Brief History of Everyone Who Has Ever Lived) and get the inspiration for your next contract tips? Or when you dig in the corner of a site and find what you had been hoping for? Read the

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Fitness for Purpose aka Promising the Impossible

One of the contract traps for anyone providing construction works is a fitness for purpose obligation. This type of strict liability output obligation is rarely expressly included in a construction contract* (one of the arguments being that it is not covered by standard insurances). However… Fit for furpose Whenever I

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Review Your Scope: Is It Included?

To work out whether works, goods or services are ‘extra’ ie a change to the original scope, you need to know the original scope of the works as well as how your contract defines changes/variations/extras. However, the definition of a change varies from pretty wide (eg JCT), to narrow (MF/1)

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