Whatever you do you must act quickly and take advice! Adjudication is a 28 day from the start to the decision process that provides a quick and (relatively) inexpensive procedure for resolving disputes under construction contracts. It has become easily the most popular and effective manner in which to settle differences. Adjudication has been imposed [...]
In an interesting case recently we acted for a contractor against an Employer under a JCT standard contract when the Architect’s employment was terminated by the Employer – who then in breach of contract failed to replace the Architect. Consequently there was no extension of time granted, no issue of the Certificate of Practical Completion, [...]
Adjudication has been called the saviour of the construction industry as far as construction disputes or construction claims is concerned. But what exactly is adjudication and why does it have to be used. Following the introduction of the Housing Grants, Construction and Regeneration Act 1996, otherwise known as the ‘Construction Act’, every construction contract must [...]
I often get asked what size does a project need to be before the use of a formal contract. And my advice particularly, for working with private clients, is basically any size needs a formal contract if you want to avoid the headaches. Likewise when friends have having building work done I give them exactly the same advice that they should not employ a builder without any standard form of contract in place.
A Letter of Intent can take many forms but all attempt to express an intention to enter into a contract and a request for work to commence before the contract is concluded. It may be the letter states there is an intention to enter into a contract but without obligation or liability at the time of issue. Therefore anything done on the strength of such wording by a contractor may well be at its risk or the letter may perhaps require some work to be commenced (perhaps to meet a tight programme) e.g. design, placing orders, mobilisation etc. This type of letter can create obligations in that the contractor may recover monies for work carried out even of the contract is not finalised or even if the works do not proceed.
Construction contracts and construction law can be a minefield. However final accounts (including for the purposes of this article final certificates) draw a line of sorts under the contractual obligations owed by the parties to a contract to each other. As always the answer depends on what the sub contract actually says. However, frequently under [...]