200 contractual problems and their solutions

200 contractual problems and their solutions

Description

Procurement -- Tenders and bidding -- Design -- Letters of intent -- Programme -- Delays and delay analysis -- Extensions of time -- Liquidated/delay damages -- Variations -- Loss and expense/additional cost -- Payment -- Practical completion and defects -- Rights and remedies -- Adjudication

Table of contents

200 Contractual Problems and their Solutions......Page 3
Contents......Page 5
Foreword......Page 23
Preface......Page 25
1.1. What are entire contracts and how relevant are they in the construction industry?......Page 27
1.2. Do projects where the parties enter into partnership arrangements require a formal contract to be agreed?......Page 29
1.3. What is the effect of an agreement to undertake work which is expressed as being Subject to Contract?......Page 31
1.4. What is Two-Stage Tendering and how does it operate?......Page 33
1.5. Where tender enquiry documents indicate that an established.........Page 35
1.6. What liability does a tendering contractor have who in its bid names key personnel.........Page 37
1.7. Can a contract which is freely entered into by the parties not be enforced on the.........Page 39
1.8. Can an architect or engineer be held to have acted negligently for advising a client to.........Page 41
1.9. Where an unsuccessful tenderer is prevented from adjusting its tender after it has been.........Page 44
1.10. What is the difference between Management Contracting and Construction Management?......Page 46
1.11. A public sector project is advertised and tenders invited. Within the advertisement, it is.........Page 48
2.1. What is meant by the Battle of the Forms?......Page 53
2.2. If a tender which contains an error is accepted in full knowledge of the error, has the tenderer any redress?......Page 55
2.3. Where a contractor or subcontractor submits a tender with its own conditions of contract.........Page 56
2.4. The submission of an unambiguous quotation which receives an unconditional acceptance can.........Page 58
2.5. Where an employer includes with the tender enquiry documents a site survey which proves.........Page 59
2.6. If, after tenders have been received, the employer decides not to proceed with the work.........Page 65
2.7. What is a tender contract and will it assist a contractor/subcontractor who submits.........Page 67
2.8. If an architect/engineer, acting as employers agent in a Design and Construct contract.........Page 69
2.9. Does an employer have any liability for not sending a subsoil survey which is in his possession.........Page 70
2.10. If a subcontractor submits a lump sum estimate to a contractor to carry out the subcontract work.........Page 72
2.11. Where a tender enquiry requires tenders to remain open for acceptance for a specific period.........Page 73
3.1. What is the difference between a f?itness for purpose responsibility and an obligation to exercise.........Page 75
3.2. Where a contractor/subcontractors drawings are approved, checked, inspected, etc. by.........Page 79
3.3. Who is responsible for co-ordinating design? Can a main contractor be legitimately given this.........Page 82
3.4. Can a contractor be held responsible for a design error where the employer appoints an architect.........Page 83
3.5 Can a main contractor be responsible if a nominated/named subcontractors design is defective?......Page 84
3.6. Must a contractor notify an architect/engineer of defects in his design?......Page 86
3.7. Where an architect/engineer includes a new product in his design following advice from a.........Page 88
3.8. Where an architect/engineer is required by the conditions of the contract to approve, or accepts.........Page 89
3.9. Where is the line to be drawn between an architect/engineers duty to design the works or a.........Page 90
3.10. Where an item of work has been properly provided for in the Employers Requirements but is.........Page 92
3.11. Is the contractor entitled to payment for design in full when the design work has been completed.........Page 94
3.12. On a design and construct project, where the architect is novated from the employer to the contractor.........Page 95
4.1. Mr Justice Clarke, in the case of RTS Flexible Systems Ltd v. Molkerei Alios Muller (2010).........Page 97
4.2. What risk is a contractor taking if it receives a letter of intent which places a cap on expenditure.........Page 99
4.3. When work is undertaken in accordance with a letter of intent without a contract being entered.........Page 101
4.4. Under what circumstances, if any, could a letter of intent be regarded as a concluded contract?......Page 103
4.5. What are the advantages and disadvantages to an employer and contractor in work being.........Page 105
4.6. Could an architect, engineer or project manager be negligent for recommending to an employer.........Page 106
5.1. Where a contractor submits a programme which is approved or accepted by the architect/engineer.........Page 109
5.2. Is a subcontractor obliged to follow a main contractors programme?......Page 110
5.3. Who owns f?loat time in the contractors programme, the architect/engineer or the contractor?......Page 112
5.4. What is the effect of making the programme a contract document?......Page 114
6.1. If work is delayed due to two or more competing causes of delay, often referred to as concurrent.........Page 119
6.2. Will a claim for an extension of time and the recovery of loss and expense which does not.........Page 126
6.3. What is meant by a contractor or subcontractor having to use constantly his best endeavours.........Page 133
6.4. What is meant by Time is of the Essence?......Page 136
6.5. Where delays to completion of the works have occurred and disputes arise as to the appropriate.........Page 138
7.1. Does a contractor or subcontractor lose entitlements to extensions of time if he fails to.........Page 143
7.2. What is the Prevention Principle does it provide a contractor with assistance in avoiding.........Page 148
7.3. Are minutes of site meetings considered by the courts to be adequate notices of delay.........Page 151
7.4. Can an architect/engineer grant an extension of time after the date for completion has passed?......Page 152
7.5. If the architect/engineer issues a variation after the extended completion date but before practical.........Page 154
7.6. When an architect/engineer is considering a contractors application for an extension of time.........Page 156
7.7. Where a contractors progress is behind programme, will he be entitled to an extension of.........Page 157
7.8. Some standard forms of contract, such as the JCT contracts, provide for extensions of time.........Page 158
8.1. What is the difference between liquidated damages and a penalty?......Page 163
8.2. If the employer suffers no loss as a result of a contractors delay to completion, is he still.........Page 165
8.3. If a delay is caused by the employer for which there is no specific entitlement to an extension.........Page 167
8.4. Are liquidated damages which are calculated using a formula or based upon a percentage.........Page 169
8.5. If the architect or engineer fails to grant an extension of time within a timescale laid down.........Page 170
8.6. If the contractor delays completion but no effective noncompletion certificate is issued by.........Page 172
8.7. Can a subcontractor who f?inishes late have passed down to him liquidated damages f?ixed.........Page 174
8.8. What is meant by time at large? How does it affect the employers entitlement to levy.........Page 176
8.9. Can a contractor challenge the liquidated damages f?igure included in a contract as being a.........Page 178
8.10. If liquidated damages to be enforceable must be a reasonable pre-estimate of loss.........Page 180
8.11. If liquidated damages become unenforceable and hence an entitlement.........Page 182
8.12. Where a contract includes a single liquidated damages amount for failing to complete the.........Page 183
8.13. Is it possible to include in a subcontract an all-embracing sum for liquidated and ascertained.........Page 185
8.14. Are liquidated damages payable in respect of delays which occur after a contractors.........Page 187
8.15. What are the problems associated with applying liquidated damages where provision.........Page 188
8.16. Do liquidated damages provide a complete remedy for delays to a contract?......Page 190
9.1. Where a contractor/subcontractor submits a quotation for extra work which is accepted.........Page 193
9.3. Where work is omitted from the contract by way of a variation, can a contractor or subcontractor.........Page 195
9.4. Where work is omitted from a contract and given to another contractor to carry out, is there a.........Page 197
9.5. Where, due to a variation, a contractor has to cancel an order for the supply of material.........Page 199
9.6. How are fair rates defined?......Page 201
9.7. When do quantum meruit claims arise and how should they be evaluated?......Page 204
9.8. Can the issue of a variation to the work ever have the effect of creating a separate or replacement contract?......Page 207
10.1. Where a contractor/subcontractor is granted an extension of time, is there an automatic.........Page 211
10.2. Where a contractor/subcontractor successfully levies a claim against an employer for.........Page 212
10.3. Will a contractor or subcontractor substantially prejudice its case for additional.........Page 213
10.4. When a contractor/subcontractor, with regard to a claim for loss and expense or.........Page 215
10.5. With a programme shorter than the contract period, can the.........Page 221
10.6. Where a contractor submits a programme which is accepted or approved, showing.........Page 225
10.7. Is a contractor/subcontractor entitled to recover the cost of preparing a claim?......Page 227
10.8. Will the courts enforce claims for head office overheads based upon the Hudson.........Page 231
10.9. Where a delay to completion for late issue of information has been recognised.........Page 240
10.10. Once it is established that additional payment is due for prolongation.........Page 241
10.11. When ascertaining contractors claims on behalf of employers, how should consultants.........Page 243
10.12. Is a contractor/subcontractor entitled to be paid loss of profit as part of his monetary claim?......Page 246
10.13. Is a contractor/subcontractor entitled to be paid acceleration costs as.........Page 247
10.14. Where a written claims notice is required to be submitted within a reasonable time.........Page 250
10.15. What methods of evaluating disruption have been accepted by.........Page 251
10.16. Can a claims consultant be liable for incorrect advice?......Page 255
10.17. If a delay in the early part of a contract caused by the architect/engineer pushes.........Page 256
10.18. Who is responsible for the additional costs and delay resulting from unforeseen.........Page 257
10.19. Where one party to a contract is in breach and the injured party incurs loss.........Page 260
10.20. What is meant in legal terms by the words consequential loss?......Page 261
10.21. Is it possible to include in a contract a daily or weekly rate which will be paid to.........Page 262
11.1. Where a contract requires the contractor to give a guaranteed maximum.........Page 265
11.2. Where a subcontract provides for 2.5% cash discount, does this mean.........Page 267
11.3. Under what circumstances are contractors/subcontractors entitled.........Page 270
11.4. Can a contractor force an employer to set aside retention money in a separate bank account?......Page 271
11.5. If an employer becomes insolvent, what liability does the contractor.........Page 274
11.6. Can a contractor/subcontractor legitimately walk off site if payment is not made when due?......Page 277
11.7. Where a contractor undertakes work which he considers should be paid for on.........Page 279
11.8. Can an architect/engineer sign a daywork sheet and then refuse to certify.........Page 280
11.9. Where a contractor/subcontractor includes an unrealistically low rate in the.........Page 281
11.10. Can a debtor enforce acceptance of a lesser sum in full and f?inal settlement?......Page 283
11.11. How can subcontractors avoid pay when paid clauses?......Page 286
11.12. Once the value of a contractor/subcontractors work has been certified and.........Page 290
11.13. Can a contractor deduct claims for overpayments levied on one contract.........Page 291
11.14. When a contractor completes significantly early, may the architect/engineer.........Page 293
11.15. Where an architect/engineer undercertifies, is the contractor/subcontractor entitled to claim interest?......Page 295
11.16. Can an architect/engineer refuse to include an amount of money in a certificate in.........Page 299
11.17. Can an employer refuse to honour an architect/engineers certificate on the.........Page 300
11.18. Where a cheque is issued in respect of construction work undertaken, can it.........Page 303
11.19. Where agreement is reached whereby one party to a construction contract.........Page 304
11.20. Are there any circumstances when a standard form of construction contract.........Page 306
11.21. What is a project bank account and how do the advantages compare with the disadvantages?......Page 310
11.22. What is the difference between set-off and abatement?......Page 312
11.23. Where a contract requires the contractor to provide information for use.........Page 314
11.24. Where a party to a construction contract is due to make a payment to the.........Page 316
11.25. Where payment is made late, is there a legal entitlement to claim interest?......Page 318
11.26. Where, under a JCT contract, an interim payment is due to be made to the.........Page 320
11.27. Architects, engineers and quantity surveyors are often required to provide.........Page 322
11.28. Where money remains unpaid, is the service of a statutory demand and a.........Page 323
11.29. Where a claim is made by a subcontractor against a main contractor.........Page 325
11.30. Can a contractor or subcontractor refuse to commence work until satisfactory.........Page 327
12.1. How are practical completion and substantial completion under the JCT and ICE conditions defined?......Page 329
12.2. Where an employer takes possession of a building or engineering facility before all the.........Page 332
12.3. When does practical completion occur under a JCT Standard Form of Building Subcontract?......Page 334
12.4. Where at the end of the defects liability/rectification period/maintenance period.........Page 336
12.5. Is a contractor/subcontractor absolved from any liability if the employer.........Page 338
12.6. Most subcontracts provide for the release of the f?inalbalance of retention only.........Page 340
12.7. Can an employer recover from the contractor the costs involved.........Page 341
12.8. Where a dispute arises between employer and contractor which.........Page 342
12.9. What is the difference between patent defects and latent defects?......Page 343
12.10. Are there any circumstances where a quantity surveyor could be.........Page 347
12.11. Work has been completed and defects in the contractors.........Page 349
13.1. Where a contract requires the parties to act in good faith.........Page 351
13.2. What obligation does a contractor, subcontractor or supplier have.........Page 354
13.3. Is there an unfettered power to reject work given.........Page 356
13.4. If an estimate prepared by an engineer or quantity surveyor proves.........Page 358
13.5. When defects come to light after the architect/engineer has issued.........Page 361
13.6. Who is responsible if damage is caused to a subcontractors.........Page 365
13.7. How is the term regularly and diligently, as used in the standard.........Page 367
13.8. Are there any circumstances under which a.........Page 368
13.9. What is a contractors liability to the employer for failing.........Page 370
13.10. Do retention of title clauses still protect a supplier or.........Page 372
13.11. Can the signing of time sheets which make reference to standard.........Page 377
13.12. Can suppliers rely upon exclusion clauses in their terms.........Page 378
13.13. What level of supervision must an architect provide on site?......Page 383
13.14. Where a specification includes a named supplier or other.........Page 386
13.15. If a subcontractor is falling behind programme and in danger.........Page 387
13.16. Can parties to a dispute be forced to submit the matter to mediation?......Page 388
13.17. Do contractors, subcontractors, architects or engineers who have.........Page 390
13.18. Parties to a dispute often make offers to settle which are stated to.........Page 392
13.19. Where a contractor takes over work which is part completed.........Page 394
13.20. Where a contract requires a notification to be in writing, sent.........Page 396
13.21. Where an engineer is employed by the employer, is he legally.........Page 398
13.23. What are the legal responsibilities of a project manager?......Page 402
13.24. Are project managers, when performing duties relating to the......Page 404
13.25. Can a quantity surveyor who is employed by the employer be......Page 406
13.26. Can an architect who recommends a contractor.........Page 407
14.1. Will an adjudicators decision be enforced by the courts?......Page 409
14.2. Will a court enforce part only of an adjudicators award?......Page 410
14.3. When can it be said that a dispute has arisen which gives rise to an.........Page 411
14.4. To comply with the Construction Act 1996 and be subject to.........Page 414
14.5. Can a dispute concerning oral amendments to a construction contract be referred to adjudication?......Page 417
14.6. Where a mediator is appointed in relation to a dispute in.........Page 418
14.7. Will a court enforce an adjudicators award which is clearly wrong?......Page 419
14.8. If a dispute is the subject of ongoing litigation, can one.........Page 421
14.9. Can an adjudicator withhold a decision from the parties until his fees are paid?......Page 422
14.10. If an adjudicator issues a decision late, can it be enforced?......Page 424
14.11. The Construction Act states that a party to a construction.........Page 426
14.12. Where a compromise agreement relating to a dispute.........Page 427
14.13. A matter in dispute can only be referred to adjudication.........Page 428
14.15. Are the parties entitled to challenge an adjudicators fees on the grounds that they are unreasonably high?......Page 431
14.16. Does a draft adjudicators decision constitute a f?inal decision?......Page 432
14.17. Does an adjudicator who communicates with one party without.........Page 433
14.18. Can an adjudicator employ the services of an expert to assist in making a decision?......Page 434
14.20. Have the courts laid down any general guidelines as to how.........Page 436
14.21. Where an adjudicator issues a decision involving the payment.........Page 439
14.22. Where an adjudicators decision provides for a sum of money.........Page 440
14.23. Can a party to a construction contract who is reluctant to have.........Page 441
14.24. Can the party that is successful in adjudication recover its costs from the losing party?......Page 442
14.25. Where a contractor includes in its subcontract terms a clause.........Page 444
14.26. It has been argued that adjudication in accordance with the.........Page 446
14.27. Where one party claims that the adjudicator has no jurisdiction.........Page 449
14.28. What happens if the adjudication provisions as set out in the.........Page 450
14.29. Is it possible for a Referring Party to restrict or exclude part of the.........Page 452
14.30. Can a losing party refuse to comply with an adjudicators decision on the grounds that the Referral Notice was served late?......Page 454
14.31. Section 105(1) of the Housing Grants, Construction and.........Page 456
Table of Cases......Page 459
Index......Page 471

Details

  • Author: Roger Knowles
  • Edition: 3rd ed
  • Publication Date: 2012
  • Publisher: Wiley-Blackwell
  • ISBN-10: 1118257030, 1118257049
  • ISBN-13: 9781118257036, 9781118257043
  • Pages: 482
  • Format: pdf
  • Size: 7.0M
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