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A specialist contractor employed by the contractor in any works.
Due to the size or nature of any building works or part thereof the Main Contractor may chose to sub contract works to another more specialist team.
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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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One of the key considerations for a developer when they are looking to procure works, is the appointment of the contractor. The procurement route chosen will then determine the level of risk and responsibility that the contractor takes on. However, regardless of the procurement methodology used, a consistent theme, in the UK construction market, is that the contractor usually sub-contracts out discrete elements (if not all) of the responsibility that it has taken on.The developer (as employer) and the contractor will enter into a building contract (ie main contract) that reflects the position agreed between them with regards to risk allocation. The contract will also set out clearly what works and design the employer is expecting the contractor to carry out and take responsibility for, in return for the contract sum.Unless the contractor is appointed for its specialist skills or qualities (where sub-contracting would not be permitted), it is standard in the market for the contractor to then consider which packages of works to sub-contract out to specialist sub-contractors. Typically,...
This Practice Note sets out the obligations imposed by the construction industry scheme (CIS) rules on sub-contractors, including:•registration•the possibility of applying for gross payment status, and•record keepingThe CIS was devised to limit the amount of tax lost as a result of sub-contractors in the construction industry under-declaring or failing to notify their chargeability to UK tax.For an overview of how the CIS works, see Practice Note: Construction industry scheme—overview.The scheme operates by requiring the withholding of tax at source at the point of making a contract payment, thereby reducing the risk of a subsequent default by the sub-contractor. For the meaning of 'contract payment' and detail on the amount of the payment which is subject to withholding tax under the CIS rules, see Practice Note: Construction industry scheme—contract payments.Unless a sub-contractor successfully applies to receive payments gross, (for which it must satisfy three tests outlined below in the section: registering for gross payment), payments by a contractor to a sub-contractor will be made:•after deduction of tax at 30% if the...
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Project lawyers’ completion documents list—onshore wind farm and ground-mounted solar projects—template PROJECT DETAILS PROJECT NAME: [insert name of project] CLIENT: [insert name of client] [Insert name of firm] PROJECT LEAD: [insert name of client/lead partner] PROJECT PARTIES PROJECT PARTY DETAILS Account Bank(s) [insert name of Account Bank] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Account Bank] Agent [insert name of Agent] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Agent] Architect [insert name of Architect] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Architect] Arrangers [insert name of Arrangers] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Arrangers] Civil Design Consultant [insert name of Civil Design Consultant] (Company Registration No. [insert number]) whose registered office is at [insert registered office of Civil Design Consultant] Construction Contractor [insert name of Construction Contractor] (Company Registration No. [insert number]) whose registered office is...
Local government outsourcing contract—template pensions schedule 1 Interpretation 1.1 The following definitions and rules of interpretation apply in this Schedule: Admission Agreement • means the admission agreement to be entered into on or around the date of the [Outsourcing Contract] between the administering authority of the LGPS and the Supplier Best Value Direction • means the Best Value Authorities (Staff Transfers) Pensions Direction 2007 Broadly Comparable Pension Scheme • a pension scheme formally certified by the Government Actuary’s Department as broadly comparable to the LGPS Customer’s Scheme • the [ [LGPS] OR [other pension scheme] currently operated by the Customer in respect of the Relevant Employees] Fair Deal Guidance • HM Treasury Fair Deal for staff pensions: Staff transfer from central government (October 2013) Onward Transfer Date • the date of transfer of Onward Transferring Employees of the Supplier pursuant to TUPE 2006 on expiry (or earlier termination) of the [Outsourcing Contract] Onward Transferring Employees • the employees of the Supplier who...
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If a contractor is insolvent, can its sub-contractor claim outstanding payments directly from the employer? If the main contractor becomes insolvent, its sub-contractor will want to know if it can obtain payment from any other source, in particular from the employer. The sub-contractor's first step should always be to check whether the terms of its sub-contract provide any assistance in such a situation. In doing so, the sub-contractor should also check the terms of the main contract if, as is often the case, it has been incorporated into the sub-contract. If a copy of the main contract was not physically attached to the sub-contract at the time of execution, the terms of the sub-contract may entitle the sub-contractor to ask for a copy from the main contractor. This Q&A looks at the possible routes by which the sub-contractor may be able to obtain payment in these circumstances. Collateral warranty If the sub-contractor has provided a collateral warranty to the employer, it may contain 'step-in' rights which allow the...
What does it mean when a party waives or asserts its ‘moral rights’ in a building contract or consultant appointment? Moral rights in intellectual property provisions Intellectual property is an important issue in relation to construction projects. The parties that own the copyright in designs and specifications want to protect their rights—the parties who need to use the copyright material, both during the construction works and once the building/project is completed, want to make sure that they have adequate rights to do so without infringing copyright. See Practice Notes: Copyright in construction contracts and Copyright in a consultant's appointment for information on copyright matters in construction. It is standard practice, therefore, to include provision within a building contract, consultant appointment, collateral warranty or other construction contract which deals with intellectual property rights. Typically, a contractor/consultant/sub-contractor grants a licence to the party that it has contracted with, allowing that party to use the relevant copyright material for a broad list of purposes—usually including matters such as the construction, maintenance...
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This week's edition of Property weekly highlights includes: cases on the Contracts (Rights of Third Parties) Act 1999, equitable accounting by a mortgagee, modification of restrictive covenants, tenants’ insurance payments and exemption from business rates, a consultation and a working paper on planning reforms to boost housing delivery, consultations on biodiversity and updated guidance on higher-risk buildings.
This week's edition of Corporate Crime weekly highlights includes analysis of the final report from part one of the Independent Review of Disclosure and Fraud Offences, of a recent Supreme Court case which found that the interpretation of defence statements in criminal cases depends on context, of the creation of an International Anti-Corruption Prosecutorial Taskforce and of what to expect from the CMA with its new powers to enforce consumer protection law under the Digital Markets, Competition and Consumer Act 2024. Also included is news of the publication of the terms of reference for part two of the Independent Review of Disclosure and Fraud Offences, of new guidance from the SFO on corporate self-reporting and DPAs, of new penalties targeting online platforms that fail to remove knife-related content and of new sentencing provisions for water company executives under the Water (Special Measures) Act 2025. All this, and more, in this week’s Corporate Crime highlights.
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