What Can One Learn from Carillion?

/ Contractual Issues, General

Blog Author: Peter Hibberd The collapse of Carillion was a shock and affects many within the industry, not least sub-contractors and suppliers. It was a shock because, despite the warnings of some commentators, large companies supposedly should not go into compulsory liquidation. It is in that belief that a sub-contractor is generally happier to work for large companies. Carillion’s collapse shows that belief, if not entirely misplaced, to be one that cannot be taken for granted. Just because a company is large it is not…

Incompatible Provisions

/ Contractual Issues

Blog author: Peter Hibberd Contract interpretation and litigation, it is said, are not exact sciences: this is no better illustrated than by the recent case of MT Hojgaard vs E.ON Climate & Renewables UK Robin Rigg East Ltd, which went all the way to the Supreme Court. At the heart of that case was the tension between different provisions within the various documents that constituted a design and build contract for the design, fabrication and installation of foundations for 60 wind turbines. In essence the…

JCT Payment Notices: Welcome Guidance from the Court of Appeal

/ Contractual Issues

Construction standard form contracts have a great deal to recommend them. Parties to a contract can save time and cost by starting negotiations with an industry recognised set of terms which deals with all the matters that the parties may have to agree. But while a standard form provides a good starting point, it needs to be adapted to meet specific project needs. Parties should take great care when doing this because, as the case of Balfour Beatty Regional Construction Limited v Grove Developments Limited…

JCT Design and Build Contract 2016: Simply Fair

/ Contractual Issues, JCT 2016 Edition

At the time of the government’s consultation on Building a Responsible Payment Culture I commented on the balance between legislative intervention and the freedom to contract. At that time it was debatable whether further legislative intervention in contractual payment was desirable. Other commentators also expressed doubts. However the driver then, which still prevails, was that the payment process still needs improving. Therefore, it is not wholly surprising that we have seen further legislative change and government guidance as regards fair payment, albeit not as extensive…

JCT Design and Build and JCT Standard Building Contracts 2016 – Part II

/ Contractual Issues, JCT 2016 Edition

JCT has published the new edition of 2016 Design and Build Contract in conjunction with the Design and Build Sub-Contract for use with it. The purpose of this note is to outline the principal changes from the previous 2011 edition and answer some frequently asked questions. Part I of this article was published in the February edition of JCT News. How is Loss and Expense for delay dealt with? Section 4 which deals with loss and expense still requires prompt initial notification of claims, or…

Obtaining Planning Consent – What is Your Responsibility?

/ Contractual Issues

Blog authors: Emily Dickson and Emily Pittaway – BLP Law Securing planning consent is a fundamental first step for any development project. Where a building contract does not expressly oblige either party to apply for or obtain planning consent, or other project specific approvals such as conservation area or listed building consent, who bears this responsibility? This is an important issue, particularly in circumstances where such consents are not obtained in time for the works to start. If responsibility falls on the employer, then the contractor…

JCT Design and Build and JCT Standard Building Contracts 2016 – Part I

/ Contractual Issues, JCT 2016 Edition

Blog Author: Suzanne Reeves – Partner, Wedlake Bell JCT Design and Build 2016 Contract JCT has published the new edition of 2016 Design and Build Contract in conjunction with the Design and Build Sub-Contract for use with it. The purpose of this note is to outline the principal changes from the previous 2011 edition and answer some frequently asked questions. In summary, these are: Introduction of common “Interim Valuation Dates” which will apply throughout the contract chain including at sub-contract and sub-sub-contract tiers. Introduction of…

Not So Standard Contracts

/ Contractual Issues

Blog author: Peter Hibberd After Brexit, the UK is to go its own way regarding procurement and contracts but it will still have to work within parameters set by others if it is to trade internationally – something which JCT will continue to pursue regardless of the UK’s membership of the EU. During the past year, few subjects have created as much angst and foreboding as Brexit even though its definition is unclear– perhaps that is the problem. This article does not repeat the well-trodden arguments…

Does a failure to sign mean you’re off the hook?

/ Contractual Issues

Blog authors: Marc Hanson and Helena Savva – BLP Law JCT forms include comprehensive guidance on execution, in addition to standard provisions allowing the parties to execute the contract under hand or as a deed. However, what they do not include are terms providing that the contract will not be binding unless both parties execute it. So, what if the parties amend their JCT form to include such a term and then one party doesn’t sign? Surely, the answer must be that the contract won’t…

Making Amends

/ Contractual Issues

Blog author: Peter Hibberd Amending standard form building contracts is done more than is necessary and sometimes even changes the nature of the contract. Amendment might be done so as to change the risk apportionment or simply because of office practice without regard to risk – whatever, problems frequently arise. In addition to any imbalance of risk created there is also potential for inconsistency, conflict and or incoherence in the contract. Consequently, the effect of an amendment may become costly in an unknowing way. JCT Standard forms of contract are devised by experienced practitioners to…