Category: Risk

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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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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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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Disastrous Disputes

Weirdly, avoiding disputes does not seem to be a key factor driving the drafting of contracts (although PPC2000 might be an exception). However, given the rising cost and time involved in resolving disputes, as well as the damage to reputations and the sustainability of a company, it should be. My

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