Blog Author: Peter Hibberd Those involved with construction frequently berate themselves and others for its poor performance; often rightly. However, there remains a failure to recognise fully what can be done to improve. The tendency to concentrate simply on improving efficiency is not enough because one can be efficient without creating value. What must be improved is quality and productivity as these will create project life value for the client and a better return to the participants without increasing costs disproportionately. Those two objectives are…

Blog Author: Alexandra Reid The main JCT contracts specify that where this is ‘considered appropriate’ the contractor should engage its sub-contractors using the relevant version of the JCT sub-contract which sits beneath the main contract in question. JCT contracts are therefore drafted in such a way that ‘back to back’ obligations are ensured. So what can this mean for contractors? A short answer is that the JCT has satisfied itself that its own sub-contracts have been carefully drafted to ensure that their key contractual terms…

Blog Author: Peter Hibberd Retentions meet a real need and aren’t a problem in themselves – it’s how they are administered that needs fixing The clarion call for no retention has persisted for many years and has once more initiated action. This time BEIS undertook a consultation “on the practice of cash retention under construction contracts”, with its outcome imminent. Meanwhile a private members’ bill from Peter Aldous received its first reading but its second is delayed until October. The cynical might consider this a…

Understanding contractual provisions can be complicated but a solid legal framework that also reflects fair payment guidance is essential For payment to work effectively it is necessary for the parties to act properly. Facets of acting properly include good faith, appropriate skill and knowledge of the payment process. Where these attributes exist, few problems regarding payment should occur. Contract authoring bodies for their part can only specifically address the payment process but the simplicity or otherwise of that process has an impact on the ability…