As you know, I am a big fan of contracts being tools to enhance trust. This post is inspired by Episode 98 of The Hearing (a legal podcast) on Trust and Scepticism for Lawyers, featuring Dr Larry Richard, Ann Rainhart and Michael Callier. What is trust? Dr Larry Richard says
What is a cognitive bias? These are shortcuts to help us act and think efficiently, and (in the past) to survive. They also help us understand each other better. Sometimes these are referred to as the curse of knowledge. Not all of these shortcuts are based on logic! There are
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
The Dalton Company, based in Toronto, Canada, have trust as a core value in their business. I was introduced to them by Stephen MR Covey, author of the Speed of Trust. This what they said about how they do business (when I interviewed them for CICES back in 2017). Trust-based
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
Reinforcing my experience The latest Arcadis Global Disputes Report (2022) confirms a few of the experiences I have as a contracts lawyer: contracts are rarely without errors – in 2021 errors or omissions in the contract documents were the second biggest cause of global disputes contracts reviews are worth the
What are the alternatives to retention? In my view, the retention is effectively ransom money and the parties rarely know who actually owns it. It can be kidnapped and held as a form of leverage. Its two key purposes are: security against defective work or security against insolvency within the
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
Back in 2017 I read Speed of Trust by Stephen MR Covey and came across this story: In the construction industry, which is typically very ‘win/lose’ and adversarial between contractors and subcontractors, Shea Homes decided to create a different model. Among the many steps they took, they renamed their subs
Is collaboration ever going to be the norm, or will it always be niche? A panel at the World Commerce and Contracting EMEA Summit 2022 debated this issue. The drivers in favour of collaboration were: The pandemic effect. The events of 2020 forced many clients to collaborate with their suppliers