In the construction industry, more than any other industry, there is a tendency for works to be carried out on the basis of unsigned contracts and letters of intent. While there are often legitimate commercial pressures to start work before all the contractual terms have been agreed, two recent cases have highlighted the risks in not getting this right:
I recently attended a seminar held by Lewis Silkin LLP on construction security, focusing on bonds and parent company guarantees.
Key points arising from the seminar include: Continue reading
There is an old joke: how many lawyers does it take to change a light bulb? Answer: what do you mean by “change”? We are often accused of pedantry but it is actually important to know what a contract means.
Mr Justice Akenhead has recently refused an application for summary judgment to enforce an adjudicator’s decision, partly on the basis that the contract was not “in writing”.
At first blush the case appears unremarkable, but the judgment is worth reading as it provides important guidance on what “in writing” actually means. Continue reading
You have let a construction contract. All seems to be going well, albeit progress is a bit slow. A couple of subcontractors then come to see you: they say that the main contractor has not paid them for a while and they are thinking of suspending or leaving the site.
Alliancing matters to clients, contractors and professional consultants. It can deliver what was once thought undeliverable, but it can also exclude innovative SMEs (small and medium enterprises) from projects that they might otherwise transform.
Well, it looks like we might finally be getting the amendments to the Construction Act 1996 that we were promised by Gordon Brown over four years ago. After a review by Sir Michael Latham and two consultations, a draft Bill was eventually published by DBERR in July 2008 (July 2008 Bill) (see Legal update).
Many interested parties (such as the Society of Construction Law (SCL), the Technology and Construction Solicitors Association (TeCSA) and the Royal Institute of Chartered Surveyors (RICS)) hurried away to study the July 2008 Bill and prepare their comments.
What is “Adj-Med”?
In their blog posted on 29 October, PLC Construction referred to the new adjudication rules launched by CEDR Solve. These provide that, once the adjudicator reaches a decision, he may invite the parties to take part in a mediation. He does not reveal his decision to the parties, unless the mediation is unsuccessful at resolving the dispute.
Below, we look at reasons someone might consider using “Adj-Med”, and some reasons why you might be better off avoiding it, for now at least. Continue reading
I attended a breakfast briefing given by members of RPC‘s construction team yesterday. In the current economic climate of downturn and uncertainty, they looked at a number of “hot topics”.
According to Building, the Specialist Engineering Contractors Group says that there has been a sharp rise in contractors reporting that public and private sector clients have been pushing back payments.
