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The company or individual carrying out the construction or engineering works
The contractor is employed to carry out the works in relation to a development. Depending on complexity or size of a project he in turn may "sub contract" some of the works to specialists in, for example, electrical engineering or plumbing
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Drafting a building contract/schedule of amendments—checklist Once the procurement route and form of building contract has been selected (see Practice Note: Choosing the right procurement method—construction projects) the employer should consider the following matters and incorporate the appropriate drafting in the building contract particulars and schedule of amendments. This Checklist assumes that the parties are using a standard form of building contract, such as a JCT form, and that the employer is proposing the first draft including the completed contract particulars and a schedule of amendments, which amends the standard terms. This list is not exhaustive, however, and there may be other project specific matters/risks that need to be taken into account: Contractual matters • Carry out due diligence on the contractor The employer needs to carry out due diligence on the contractor at the outset to determine whether its financial position is acceptable. Confirm the contractor’s company number and name at Companies House. • Obtain consultants’ details Confirm the full details of the consultants engaged by the employer; some...
Procurement Act 2023—key changes STOP PRESS: As of 24 February 2025, the main provisions of the Procurement Act 2023 (PA 2023) are in force. Procurements begun on or after this date must be carried out under PA 2023, whereas those begun under the previous legislation (the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011) must continue to be procured and managed under that legislation. See Practice Note: Introduction to the Procurement Act 2023—PA 2023. Introduction The Procurement Act 2023 (PA 2023) is the new legislation that will govern public procurement. It will replace the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, the Utilities Contracts Regulations 2016 (UCR 2016), SI 2016/274, the Concession Contracts Regulations 2016 (CCR 2016), SI 2016/273 and the Defence and Security Public Contracts Regulations 2011 (DSPCR 2011), SI 2011/1848. On 12 September 2024, the government announced that the go-live date for PA 2023 will be delayed until 24 February...
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Claims under the FIDIC Red and Yellow Books 2017 (clause 20.2)—flowchart This flowchart sets out the process for claims by the Contractor or Employer under clause 20.2 of the FIDIC Red and Yellow Books 2017, which applies to: • claims by the Employer for: ◦ additional payment or a reduction in the Contract Price, and/or ◦ an extension of the Defects Notification
Defects process in the FIDIC contracts (pre-2017)—flowchart This flowchart sets out the process under the FIDIC Red, Yellow and Silver Books, 1999 editions, for defects under: • clause 7.5, where any Plant, Materials, design or workmanship is found to be defective or otherwise not in accordance with the Contract and the Employer rejects the affected Plant, Materials, design or workmanship • clause 7.6, where the Employer instructs the Contractor to remove and replace any Plant or Materials not in accordance with the Contract, remove and re-execute any other work which
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ARCHIVED: This Practice Note has been archived and is not maintained. Note: The Construction (Design and Management) Regulations 2015, SI 2015/51 came into force on 6 April 2015, replacing the Construction (Design and Management) Regulations 2007, SI 2007/320. See Practice Notes: Construction (Design and Management) Regulations 2015 and CDM Regulations 2015—what's changed? [Archived].IntroductionContractors are those companies and individuals who actually carry out construction work. This hands-on’ role means that contractors are often those most at risk of suffering injury or otherwise damaging their health. The Construction (Design and Management) Regulations 2007, SI 2007/320 (the Regulations) allow contractors to have a role in planning and managing the construction work. The Regulations apply alongside the general duty which is placed on employees to take reasonable care of their own health and safety and that of others which is set out at section 7 of the Health and Safety at Work etc. Act 1974 (HSWA 1974).Please note that any reference to the term ‘client’ in this note is synonymous with ‘employer’ as used...
Spotting the early symptoms of employer insolvency•most importantly, a contractor needs to keep alert to the employer's financial status•the contractor should take heed of ongoing rumours about the employer's financial position (either in the press or by word of mouth)•look out for official announcements to shareholders/the stock market (for example, profit warnings)•note any surprising or uncommercial omissions from the project made by the employer•keep aware of the employer's non-payment or late payment of other parties on this project, or on other projects being carried out by the employer•clearly, if the employer suspends work on the scheme without any adequate explanation or without commercial rationale, this may be a sign that the employer is unwilling to finance further work•confirm suspicions by carrying out a Dun & Bradstreet search/report, which should disclose, for example, any unsatisfied court judgments against the employerIf the employer is insolvent, see Checklist: Contractor steps to take if employer becomes insolvent—checklist.Contractor methods of protecting itself in advanceThere are various ways in which a contractor can protect itself in...
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Further warranties
[Access 1 [The Contractor acknowledges that the Employer, Funders, Purchasers, Tenants, Other Interested Third Parties and/or persons employe
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When can a local authority procure a different supplier to carry out works if the current provider hasn’t performed all aspects of the contract? Article 73 of Directive 2014/24/EU (the Public Contracts Directive) is implemented into English law by the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102. Article 73 of the Public Contracts Directive and PCR 2015, SI 2015/102, reg 73 provide for the situations in which a public contract may be terminated. Strictly, breach of the contract by the contractor is not one of the situations in which the contract can be terminated but it follows from ordinary principles of contract law, which are for national law, that a breach of contract may allow the innocent party to repudiate and therefore terminate the contract In that situation,
How are head office overheads and loss of profit assessed as part of a contractor's claim for loss and expense? What is a claim for loss and expense? Under a construction contract, a contractor will usually be entitled to claim loss and expense where it suffers delay or disruption to the progress of the works, due either to matters within the employer's control or to breaches of contract by the employer. Claims for loss and expense are commonly brought under various different headings (see Practice Notes: Loss and expense and Loss and expense claims—practical tips), two of which will usually be a contractor's claim for overheads (also known as prolongation costs) and for loss of profit. On what basis can a claim be brought? Contractors often believe that an entitlement to claim overheads and loss of profit (as well as other heads of loss and expense) automatically follows from an entitlement to an extension of time. This is not usually the case and each claim must...
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Arbitration analysis: The case concerned an application to set aside an arbitral award (‘Award’) rendered by the majority of a three-member tribunal (‘Majority’) in a Singapore-seated arbitration administered by the International Chamber of Commerce (ICC). In a departure from the usual judicial reluctance to interfere with arbitral awards, the Singapore International Commercial Court (‘SICC’) set aside the Award for breach of natural justice, holding that the Majority had breached (a) the rule against bias in the form of prejudgment, and (b) the fair hearing rule. The claimant’s principal complaint was that the Majority had prejudged the dispute by cutting and pasting its reasoning and conclusions on all issues in the Award from awards issued in prior related arbitrations, rather than approaching the dispute with an impartial and independent mind. This analysis examines how the circumstances in this case satisfied the high threshold required to set aside an award for breach of natural justice. Written by Swee Yen Koh, S.C, head of International Arbitration, partner, Laura Chang, partner, and Alessa Pang,...
Ireland—Banking & Financial services analysis: This article was written by Paul Fahy, partner and head of tax and Cian Ryan, associate, of A&L Goodbody LLP and discusses the 2024 Annual Report of the Irish Revenue Commissioners (Revenue), and some of the key insights arising from this report.
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