Category: Trust

Relational contracts for better relationships

At the 2023 World Commerce and Contracting Summit, Elizabeth de Stadler from Novcon said: we should not lose sight of what we are actually here to do: which after all is to… help clients to form relationships and to define the rules of those relationships in a way that is

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Using contracts to share risk

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

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Love and celebrate deals

How many times does the legal process suck the life out of your deal? Legals are meant to support and work with sales, marketing and procurement. Too often, we hear that legals are more of a barrier to doing business – they sabotage sales. Back in 2011 the Office for

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Will they pay on time?

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

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How not to create your subcontract

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

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Essential 10: Limits

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

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Essential 9: Procedures

Contracts are not just about what scope your supplier is providing – they also explain how you are going to work with your supplier. For example, a subcontract should set out the processes for getting the subcontract works to dovetail smoothly into the wider project. Procedures deal with everything from

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Essential 8: Remedies

Your contract can create trust and make your lives infinitely better if it includes simple remedies. These are contractual processes that deal with what happens when the project doesn’t go precisely to plan. All express (contractual) remedies are far simpler, cheaper and quicker to use for both parties. They provide

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Essential 7: Risks

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

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Essential 6: Objectives

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

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