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
In 1759 Arthur Guinness signed a 9000-year lease at a rent of £45. A long lease is normally 99 years and a lease for 999 years is often seen as equivalent to freehold. So 9000 years? You won’t be surprised to know that he purchased the site a few years
A subcontractor on an anerobic digestion facility seems to have found itself in hot water when the tanks it had designed and supplied failed during testing. The main contractor (DBE Energy) had asked Biogas to provide mechanical and process design services for the facility, without any contract being signed or
The issue of quality is a thorny one on construction projects and covers everything from the construction process, to use and performance. The two main standards are reasonable skill and care, or fitness for purpose. Unless a contract clearly specifies a different standard, then you may have to rely on
An English idiom, from the 16th century confirms that you cannot both eat your cake and have it… which has been reversed (nonsensically) into ‘you cannot have your cake and eat it’! For contracts, this means you cannot have all three core objectives in one project. You cannot have both
What is the purpose or function of a contract? Is the focus legal or operational? According to research from World Commerce and Contracting, contract users defined at least 11 functions for contracts including: legal: a record of the parties rights and responsibilities; protection and remedies in the event of a
Frankly it has always surprised me that so many contracts lack a statement of the obvious ie what is the specific purpose or aim of the goods, works or services to be provided. Meeting expectations — and even exceeding them — can only come about by truly understanding what’s important