Financial limits in letters of intent are used to protect the client – because they rarely include a fixed price and are relying on ‘reasonable costs’ – and as an incentive for the contractor to sign the full contract. These limits on the client’s liability to pay for works are
Often in contracts, clauses relating to using and sharing information are split into ‘legal chapter headings’ ie topics that make sense to the contract writer but don’t necessarily reflect the needs of the contract user. When I create contracts I prefer a user-focused heading like ‘using and sharing documents and
Your contract needs to reflect a variety of aims or objectives for the parties and for the project or task: Core Aims It is trite to say projects need to balance time, cost and quality. That means any contract has to strike a balance between getting the goods, works or
Many disputes in the construction industry are about the quality of the finished project. Did it meet the parties’ explicit and implicit expectations and objectives? To take just a few examples: Should a TV mast have remained standing on Emley Moor, Yorkshire so it could transmit TV signals in snow
Payment has always been a major cause of friction for construction projects – greater transparency and fairness for suppliers was one of the drivers behind the Construction Acts 1996 and 2009. Many construction disputes, especially adjudications, revolve around whether the supplier has been paid what it believes is a ‘fair’
At least one-third of UK construction projects finish late – not against their initial schedule but against the extended one! What this means is that time is less important – or at least less prioritised – than time or money. [You do need to determine which is the client’s key
Subcontractor agreements (subcontracts) are often intended to be back-to-back with the main contract but this can lead to ambiguity and inconsistency for a subcontractor. What happens when the contractor’s works contract sets out a higher quality standard than that in the subcontractor’s contract? Back-to-Back Many subcontracts include clunky attempts to
A contract for the completion of goods, works and services often states an agreed works period or completion date. But is that period/date essential, critical or desirable? An essential term is one without which there is no contract. Under English law, if the parties do not agree a period or
The 2022 RIBA Construction Contracts and Law Survey reviewed whether the Net Zero goals of the UK government, the climate crisis and wider sustainability goals were being reflected in contracts for projects. The Chancery Lane Project, Zero Construct and the 17 UN Sustainable Development Goals are all encouraging us to
How many errors can one contract have in their clauses relating to liquidated damages? Genuine pre-estimate of loss In Buckingham v Peel, the contract included a clause stating: The Parties agree that… having given careful consideration to this matter, all LADs payable by the Contractor are considered by the Parties
© 2024 500 Words Ltd. All rights reserved
500 Words Ltd (8893252) r/o 20 Mulberry Close, Heald Green, Cheadle SK8 3NJ