Monthly Archives: December 2008

REUTERS | Fabrizio Bensch

This particular old chestnut may not be roasting on an open fire with Jack Frost nipping on its nose (as the song goes), but it has been going for years.  It’s the perennial debate about the conflict between reasonable skill and care and fitness for purpose.  However, there is an interesting twist to the debate which is of concern when drafting contracts.

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REUTERS | Ronen Zvulun

Selling a construction company

Construction companies are complex businesses. Typically, a construction company will have entered into numerous contractual arrangements with a range of clients, sub-contractors and suppliers, as well as ancillary undertakings such as bonds, guarantees and collateral warranties. There will be a mix of ongoing and completed contracts, with potential liabilities extending for up to 12 years after completion.

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REUTERS | Yves Herman

Like many, I was keen to see what the Government would do once the consultation period for the Construction Contracts Bill ended earlier this year. After all, they didn’t draft a Bill the industry wanted the first time around – it was universally criticised – and were said to be having a second attempt at it.

I found out last week, when the latest amendments had their first reading in the House of Lords. Continue reading

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