The decision in Banner Holdings Limited v Colchester Borough Council has already caught the attention of Matt Molloy. It is another decision of the TCC on a Part 8 claim dealing with non-compliant adjudication clauses, and it raises (and indeed revisits) a number of interesting issues.

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There are obvious and well-documented risks associated with contracting on the basis of a letter of intent (LOI).

What is less obvious is that different forms of contract raise particular challenges when it comes to framing LOIs. This was brought home to me recently when I looked at an LOI for works to be let under an NEC3 Engineering and Construction Contract (ECC). It quickly became clear that LOIs need careful handling where the “intended” contract is an NEC contract. Continue reading →

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 →

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 →

Working on a major infrastructure project recently, I was reminded of the issues that can arise when dealing with contractors undertaking projects on a joint venture (JV) basis. This is an increasingly common approach on large and complex projects (particularly in the roads, tunnelling and power sectors) as contractors look to pool their expertise or simply share risk.

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