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
This is the best definition of risk I have ever come across: Risk provides us with opportunities while exposing us to outcomes that we may not desire Diversity Dashboard Risks are not simply negative outcomes – bad things that may occur – risks are also positive outcomes – good things
Although you can agree pretty much anything you like under freedom to contract, there are some restrictions on that freedom: legislation: laws can mandate minimum requirements, outlaw certain terms and allow others only within specific parameters contract: a contract can restrict the parties’ rights in the future on a specific
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
The Scottish Appeal Court (the Inner House) has confirmed my suspicion that a collateral warranty is impliedly limited by the scope and terms of the underlying agreement. What are collateral warranties? A collateral warranty is a simple document designed to create contractual links between the provider of goods, works or
If you understand the principles on concurrent delay then you might also be aware of the debate whether the contract should define concurrent delay and pass its risk to the contractor. In North Midland v Cyden, the parties amended the standard JCT contract to require: the contractor to make reasonable
According to a Brief History of Cunning (podcast), Machiavelli said: one must be a fox to recognise traps and a lion to recognise wolves. When I review contracts, I focus on traps in contracts. This newsletter aims to help you spot and avoid them too. Read the full edition here » Just because you
Concurrent delay is complex, controversial and rarely dealt with in contract conditions (even FIDIC leaves it to special conditions). But before you can begin to grasp the issues in a much-talked about recent case let’s review some basic principles: The prevention principle “The essence of the prevention principle is that
Once you have realised the truth behind the pesky myths surrounding liquidated damages, you will need to consider what level of liquidated damages should go into your contracts. There are a number of options: If you state £nil, then the client cannot recover any of its losses for late completion
One of my favourite activities in contract workshops when we are reviewing time, is to ask whether the Wembley damages of £120,000 per day are a penalty or fully recoverable by the client (notwithstanding arguments about whether the contractor is entitled to an extension of time). Myths Invariably some of
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