In this video, Hannah Mycock-Overell, Senior Solicitor examines issues surrounding record keeping in construction projects. What records should be kept, and how best to prepare records should a delay or other issue arise to minimise later costs if a dispute occurs. ...
There are many risks in terminating a contract, particularly in construction contracts - get it wrong and you risk being in breach of contract yourself. The two main pitfalls are:...
We are seeing an increased adoption of BIM (Building Information Modelling) in the projects we are advising on across the private sector. Of course, BIM Level 2 became mandatory for use on all UK public sector works in April 2016. The implementation of BIM means that the contract documents for the contractor and through the supply chain and professional consultants will need to consider the specific implications of BIM....
This video looks at the risks surrounding insolvency in the construction supply chain. ...
Construction and engineering Partner, Ruth Wilkinson discusses the key risks on a construction project and how to manage those risks. How can different parties manage their risks in the event of worst-case scenarios? What are the most common risks that have to be dealt with?...
Judge Coulson’s decision in the Technology and Construction Court published last week, his last before moving to the Court of Appeal, concerns the infamous “smash and grab” adjudications. ...
What are the most common types of dispute you come across?...
On 31 January 2018 and 7 February 2018 we hosted a Managing Risk Seminar covering the following topics....
The government consultation to review the 2011 changes to the Construction Act 1996 and the practice of cash retentions in construction contracts closed on 19 January 2018. In light of well publicised Main Contractor insolvency, the review of retentions has been thrust into the spotlight....
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...