As contractor, subcontractor or consultant, the nightmare scenario of your client/main contractor entering insolvency might be unavoidable. This might happen despite thorough pre-contract checks and risk protection measures. It’s important to remember that the type of insolvency will influence the likely outcome: Whilst the purpose of administration is to rescue the business or achieve a better realisation of assets, the purpose of liquidation is to realise assets for creditors. This article identifies six things to consider....
In December 2017, FIDIC launched new editions of the following contracts to replace the 1999 editions:...
A brief insight into the most used form of security in the construction industry, bonds and guarantees, after the recent judgment of Autoridad del Canal de Panamá v Sacyr, S.A. & Ors put these forms of security instruments back in the limelight....
With 2018 fast approaching, we look back at five key things we think have shaped the past 12 months for both the industry and construction law. ...
A decision in October 2017 looked at whether the standard RIBA scope of services meant that an architect was required to ascertain and comply with a client’s budget when designing a project: Riva Properties Limited v Foster + Partners Limited [2017] EWHC 2574....
Collateral warranties are a key feature of the construction industry, and they enable beneficiaries such as funders, tenants or purchasers of a development to have a contractual link with the project team. Whilst it is possible to utilise the third party rights act, this route is limited, as seen in the case of Hurley Palmer Flatt Limited v Barclays Bank plc [2014] and you can read our analysis here....
recent decision in the Technology and Construction Court has prompted the industry to once again reflect on the well-documented cases of ISG v Seevic and Harding v Paice, from which the phrase “Smash & Grab” was born. ...
There is no doubt that off-site manufacture is being embraced by the industry. The key legal issues to address in a contract where off-site manufacture is contemplated are legal ownership of the goods manufactured off-site prior to delivery and risk of damage when those goods are in storage or transit. Whilst paying for the off-site goods or materials may be necessary, it may put the purchaser/employer at risk if the supplier/contractor becomes insolvent and the goods are not then delivered. Also, who will be responsible for damage caused to the goods or materials whilst they are in storage or during transit. Another issue is quality control and monitoring progress during the manufacturing process which should be addressed in the supply contract. These risks need to be addressed when drafting the contract....
A defining principle of the NEC3 is that the parties should deal with issues as they arise and not save these up to the end. Hence the provision in the standard form contract allowing for forecast assessments of compensation events. However, this principle can get forgotten when the parties fail to comply with the contractual machinery and timeframes or the compensation events are disputed. A case from earlier this year in the Northern Ireland courts has looked at the question of whether actual costs are relevant to the assessment of compensation events: Northern Ireland Housing Executive v Healthy Buildings (Ireland) Limited (2017)....
‘Modern Slavery’ is a term which encapsulates slavery, servitude, forced or compulsory labour, and human trafficking. Recent estimates suggest that as much as 45 million people could be living in modern slavery, a problem that the Modern Slavery Act 2015 (the “Act”) was introduced to help tackle....
Payment disputes continue to be one of the most common problems in the construction industry, and we have published numerous articles on the key court decisions that affect the interpretation of payment provisions...
Payment provisions are an industry “hot topic” and the wave of litigation since the 2009 amendments to the Construction Act remains relevant. If you would like a reminder of the principles to follow when applying for or making payment, then see our previous articles here and here....
Soft Landings is a process that helps to produce a building that delivers the operational goals that were set for it at the inception of the design and delivery project. To paraphrase, it helps make the building “do what it says on the tin”. ...
The BSRIA Soft Landings Framework has become widely used in the industry on many different kinds of contracts – but what issues should contractors be aware of?...
The Supreme Court ruling in Mt Højgaard v E.On last week held that a “fitness for purpose” obligation in a schedule to a construction contract should be given its natural meaning and effect, so confirming an earlier decision of the Technology and Construction Court (TCC) that there was a fitness for purpose obligation which required the contractor to produce foundations which would last for 20 years. ...
The Court of Appeal has recently ruled that a clause designed to exclude liability was indeed effective in excluding liability. Unsurprising on the surface, but big news when considered against the narrow interpretation rules of contra proferentem and Canada Steamship that historically limit the effectiveness of these clauses. The decision indicates a move away from such restrictive principles and towards a more natural interpretation of clause wording....
Research commissioned by the Construction Industry Training Board (CITB) has today revealed that a third of construction firms employ overseas workers...
The roles and responsibilities of key people on a build project, including that of the facilities manager, should be identified as early as possible to ensure that the soft landings process works most effectively....
This article considers some of the merits and potential pitfalls of proceeding with construction works under a Letter of Intent....
We are delighted to confirm that our partner David Rintoul, head of our construction and engineering group, has been asked to speak at the national 2017 Soft Landings Conference: Delivering value through Soft Landings conference organised by BSRIA, the Built Environment specialists. It will take place on Friday 16th June at RIBA HQ in London and our clients and friends are all warmly invited to attend the conference, invitation to which can be accessed via the below link:...