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
Author: Michael Mendelblat, Professional Support Lawyer, Construction and Engineering, London The NEC Form of Contract is now in wide use in construction projects. The first clause says that the parties "shall act as stated in this contract and in a spirit of mutual trust and co-operation", often referred to as "good faith". What this … Read more
Author: Michael Mendelblat, Professional Support Lawyer, Construction and Engineering, London In a construction project, how a builder and/or designer's potential liability is classified in the contract and technical documentation can be crucial to recovery of any costs associated with remedying a defect in design. In some cases, liability arises from failure to comply with a … Read more
Author: Julian Pollock, Partner, Real Estate, London Earlier this year, the courts decided that, even if there is an express right to carry out works in a lease, a landlord cannot ride a coach and horses through a quiet enjoyment covenant or the obligation not to derogate from grant. They must take all reasonable steps to … Read more
