The construction industry has an unenviable health and safety record. In the year to 31 March 2009, there were 53 construction site deaths. Although this number was lower than the previous year (when there were 72 deaths), the construction industry remains one of the most dangerous industries to work in.
When I was at university each department produced a T-shirt with what we would now call a “corporate strap-line”, intended to convey the essence of their area of expertise. I have to confess that I can’t remember what the law department’s T-shirt said; we are talking over 30 years ago.
The best of all the T-shirts was from the psychology department which featured a pair of piercing blue eyes with the words “we understand you” printed below… Continue reading
Last week, I looked at how a retention of title (RoT) clause can catch a contractor out, even if it complies with its building contract. This week, I want to look at this issue from the point of view of the supplier.
I Googled “RoT” and it is (we are assured) used as a reference to “Right on Time”, in which the Red Hot Chili Peppers told us that “it’s time to get on top of this“, so here we go… Continue reading
I have recently become telepathic. A contractor called me the other day saying that he was engaged on a large M&E contract and that one of his sub-contractors had gone into administration. He wanted advice on terminating the sub-contract and getting someone else to finish the work. I asked whether any of the sub-contractor’s suppliers were claiming that they still owned various items that they had supplied because of a retention of title (RoT) clause, despite the fact that the contractor had paid the sub-contractor for them. “That was going to be my second question” he said. “How did you know that? You must be telepathic.” The truth is that it’s not telepathy but more like Bill Murray’s experience in Groundhog Day, as the situation keeps repeating itself.
The adoption of Project Bank Accounts (PBAs) is one of the key elements in the Office of Government Commerce’s (OGC) drive to promote fair payment practices in the construction industry. So, with the draftsmen of the JCT, NEC and PPC2000 contracts vying for the prize of most OGC-compliant standard form, it comes as no surprise that they have all issued specimen PBA clauses for use with their respective contracts.
This post is the first of two examining the PBA documentation issued by the JCT. This week, I consider the format and purpose of the JCT PBA, together with the trust provisions that are intended to protect sub-contractors in the event of contractor insolvency. Continue reading
At the time of issuing proceedings, the parties may or may not have complied with the Pre-Action Protocol for Construction and Engineering Disputes (Protocol). Limitation issues, for example, may have prevented compliance. Alternatively, the parties may just not have entered into the spirit of the Protocol. Continue reading
Current market conditions mean there may be valid commercial reasons why a developer may not want to build out a development. Equally, there may be valid commercial reasons why a purchaser may not want to continue with its purchase of a completed development. This issue was the focus of a recent case, Menolly Investments 3 SARL v (1) Cerep SARL (2) Menolly Homes.
What is the practical value of step-in rights in collateral warranties? I ask because a number of people have recently questioned me about such rights in the context of a development project: who requires them and in which warranties?
