Monthly Archives: April 2010

REUTERS | Yves Herman

“A volcano is just a mountain with hiccups.”

We are unsure where this quote originates, but it was probably of little comfort to the thousands of travellers affected by April’s biggest story, the Icelandic volcanic eruption, which dominated the news and even managed to push the general election off the front pages for a few days. Continue reading

REUTERS | Navesh Chitrakar

If you were asked to carry out works to a small part of a large building on the basis that you had to insure the whole building for its full reinstatement value, at a disproportionate cost to the value of the works, would you take the job?

This is the issue that is currently facing many tenants and their contractors in multi-let buildings, and one which we have come across a number of times recently. Continue reading

REUTERS | Petar Kujundzic

A construction or engineering contract, in particular a sub-contract, often allows the contractor to order the sub-contractor to stop work. This often appears as a contractual right to order the sub-contractor to suspend work immediately (or to suspend after a short notice period) following which, if work does not resume within six or twelve months, the sub-contract may also terminate.

While one contract may be different from the next, the Employment Appeal Tribunal (EAT) has shone a spotlight on one non-construction law aspect of these circumstances, namely what happens if an instruction to stop or suspend work forces the sub-contractor to make its employees redundant. Continue reading

REUTERS | Navesh Chitrakar

Unless you have been trapped overseas by the volcanic eruption in Iceland for the last week or so, you will have seen the furore that Edwards-Stuart J’s judgment in Yuanda v WW Gear has caused and the column inches that have been written about it.

Last week I discussed the possibility of an end to Tolent clauses, but another aspect of that judgment is also worthy of a mention; the position of multi-party disputes post-Yuanda. Continue reading

REUTERS | Mike Blake

On Tuesday evening, Kings College London hosted the KCCLA and Sweet & Maxwell Twelfth Annual Lecture: NEC v JCT – Same problems different solutions.

The lecture was delivered debate style, with Mr Justice Ramsey chairing speakers on behalf of the JCT (Peter Hibberd and Peter Aeberli) and NEC (David Thomas QC and Dr Jon Broome). The speakers battled it out to convince the audience which was the better contract, covering a variety of issues. Continue reading

REUTERS | Fabrizio Bensch

Given the current limited supply of development funding from traditional financial institutions, developers are looking for alternative sources, both to kick start new projects and to finish off projects where their existing credit limits have been exceeded.

A possible alternative source of funding may come from contractors. Some contractors appear willing to dip into their reserves in order to maintain work (and goodwill with clients) at the expense of short term cash flow. We have recently seen evidence in the market that both developers and contractors are actively seeking such arrangements. Continue reading