The risks on a project, as well as the rewards, need to be shared equitably. Contracts have a significant role to play in what is sometimes referred to as managing with risk ie going ahead with a project while accepting that there will always be a degree of uncertainty… and
Late payment is a perennial issue, and the UK construction sector is no exception. When the Small Business, Enterprise and Employment Act 2015 introduced mandatory reporting on Payment Practices and Performance in 2017, not a single BuildUK main contractor member paid invoices within 30 days. A payment period of 30
During my decades reviewing construction contracts, often the worst ones are subcontracts. These are the three ways in which they are abused. Dumping on your subcontractor Main contractors (through their contract terms) are guilty of some of these sins: making their subcontractors sign up to all sorts of nasties that
There are two key ways to limit the supplier’s liability for claims arising from a project. First, the contract should clearly define the extent of your supplier’s obligations, so both parties really understand what your supplier is responsible for. Secondly, your contract can include limits – in time or money
There is no such thing as a risk-free construction project. You may not work in construction or engineering, but there is no such thing as a risk-free project in any sector! Each project team, scope, parties, end-user, location, specification and so on is unique. No-one can guarantee what will happen
If you don’t get paid or your client is in breach of contract, can you just stop work? It can be exceeedingly expensive to get this legal issue wrong! Stop or continue? Under English law, and assuming there is no express term or statutory provision* which allows suspension: the innocent
Build UK has set out its list of six unacceptable terms for UK construction contracts: fitness for purpose – should not be included except in the process sector [where it is modified by testing and limits on liability] unquantifiable risks – certain items should not be a contractor risk where
One of the most common misconceptions I come across, when delivering contract awareness training to consultants or contractors, is the belief that an insurance policy limits your liability to your clients. It doesn’t. Insurance is merely an asset against which your clients could bring a claim. The impact of the
One of my 10 essentials for a construction contract is to agree the remedies one party will have if the other breaches the contract. A common remedy for construction contracts is to agree damages payable for a specific breach. Typically these are the employer’s remedy for delays to completion, but
Construction disputes are a great source of lessons for everyone in the sector. But we must remember that those stories may be tragedies for the parties, especially individuals. As a lawyer, I am often asked to comment on friends’ issues and, having listened to their litany of woes – my
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