The success of large-scale development projects depends greatly on the parties maintaining a good commercial relationship. Whilst claims and disputes are often inevitable in relation to construction works, early and amicable settlement can be instrumental in sustaining those relationships and ensuring the successful delivery of a project. So when should a party start to think … Read more
Readers of this blog may be interested to know that the Herbert Smith Freehills construction and infrastructure team has launched a new blog of its own – Construction Notes. Construction Notes will include articles and updates on the latest developments in the construction sector, from both a contentious and non-contentious perspective, from HSF’s industry experts … Read more
Given the complexity of issues and the amounts that are typically involved in construction disputes – particularly those arising from large-scale development projects – preparing early and properly for a potential construction dispute is an important process, but one which can be time-consuming and expensive. Preparing for a potential construction dispute where a formal dispute … Read more
Contractor claims are an inevitable part of construction projects. Disputes are not. In order to mitigate the risk of contractor claims evolving into disputes, it is vital that they are evaluated properly and in a timely manner. Failure to do so can lead to costly and protracted disputes, which not only impact the parties’ relationship, … Read more
The suspension or termination of construction contracts can have significant commercial implications for developers. No doubt, developers will already be aware that the right to suspend and, in particular, terminate, a construction contract should be used sparingly. But what are the potential pitfalls to be mindful of if it becomes necessary to suspend or terminate … Read more
To ensure that projects remain viable and achievable, the power to vary the terms of, or the scope of works under, construction contracts can be essential for developers, particularly in times of political and economic uncertainty. But what is the difference between variations to and variations under a construction contract? Although the two concepts are easily … Read more
This blog post explores why purchasers should take an assignment or insist on other protection before relying on reports provided to them by others. If your answer to the question posed is ‘yes’, read on as this is exactly what happened in the case of BDW Trading Ltd (the “developer”) v Integral Geotechnique (Wales) Ltd (the … Read more
A commonly encountered provision in the standard form JCT Building Contract (2005 edition) was interpreted by the Court of Appeal to include an implied obligation on a developer to use “all due diligence” to obtain planning approvals. The phrase “all due diligence” was held not to require the developer to ensure that planning approvals were … Read more
The Supreme Court in E.ON v MT Hojgaard has held that apparently inconsistent provisions in a design and build contract relating to standard of skill and care as against the strict requirements of a technical output specification may both be enforced. This is likely to increase the scope of a contractor’s liability unless express provisions indicate otherwise. … Read more
