Tag: defect risk

Limits on the Contractor’s Liability under MF/1

MF/1 is a balanced contract providing plenty of opportunities for the purchaser to check the performance of the works – through three series of tests – before the contractor is released from liability.  It also clearly sets out limits on the contractor’s obligations. Limits on scope If you are acting

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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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IChemE Fitness for Purpose

Fitness for purpose clauses impose a duty on a contractor to achieve a specific result. They have come under scrutiny as a result of a series of cases in the English courts which imposed significant damages onto a contractor, in complex factual scenarios [read more]. This post considers the IChemE

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MF/1 Fitness for Purpose

Fitness for purpose clauses impose a duty on a contractor to achieve a specific result. They have come under scrutiny as a result of a series of cases in the English courts which imposed significant damages onto a contractor, in complex factual scenarios [read more]. This post considers the MF/1

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NEC4 Fitness for Purpose

Fitness for purpose clauses impose a duty on a contractor to achieve a specific result. They have come under scrutiny as a result of a series of cases in the English courts which imposed significant damages onto a contractor, in complex factual scenarios [read more]. This post considers the NEC4

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FIDIC Fitness for Purpose

Fitness for purpose clauses impose a duty on a contractor to achieve a specific result. They have come under scrutiny as a result of a series of cases in the English courts which imposed significant damages onto a contractor, in complex factual scenarios [read more]. This post considers the FIDIC

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Fitness for Purpose aka Promising the Impossible

One of the contract traps for anyone providing construction works is a fitness for purpose obligation. This type of strict liability output obligation is rarely expressly included in a construction contract* (one of the arguments being that it is not covered by standard insurances). However… Fit for furpose Whenever I

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Lessons from Failure: Check the Technical Data

I would like you to (1) learn from the failures of others (the quickest, cheapest and least painful approach) and (2) embrace the idea that failure is not optional – it is your best friend. Lesson: check the technical data In November 1999, NASA lost a $125m satellite, the Mars

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Review Your Defects Liability

When you are a subcontractor, you often receive bespoke subcontracts, under which the contractor is trying to pass all its risk (and more) to your company. I recommend getting these contracts checked as they can hide some seriously unusual terms. Deep in a subcontract this week I came across a

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What Are Your Defect Duties?

Any client needs to ensure that the works meet the contractual quality standards for goods, design and workmanship. Defects can be spotted and made good in three separate phases: During Construction The contract administrator must identify visible defects and exercise her powers before completion and ensures that issues relating to

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