Category: Write

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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Future of warranties

If we look behind the tick-box approach to collateral warranties, do we need to think again about taking a process approach to these largely ineffective agreements? Purpose of a warranty The core purpose of a warranty is to create an additional contractual link, providing a smooth avenue for a stakeholder

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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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Essential 5: Quality

Many disputes in the construction industry are about the quality of the finished project. Did it meet the parties’ explicit and implicit expectations and objectives? To take just a few examples: Should a TV mast have remained standing on Emley Moor, Yorkshire so it could transmit TV signals in snow

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Essential 4: Price

Payment has always been a major cause of friction for construction projects – greater transparency and fairness for suppliers was one of the drivers behind the Construction Acts 1996 and 2009. Many construction disputes, especially adjudications, revolve around whether the supplier has been paid what it believes is a ‘fair’

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Essential 3: Time

At least one-third of UK construction projects finish late – not against their initial schedule but against the extended one! What this means is that time is less important – or at least less prioritised – than time or money. [You do need to determine which is the client’s key

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