LAW AND CONTRACT MANAGEMENT Contents Introduction Statutes Glossary 1 UK construction industry context The nature of the industry The nature of professionalism in construction The nature of projects Procurement methods 2 Roles and relationships Consultant roles Professional services agreements Architect Typical conditions in professional services agreements Integrated documents 3 General contracting Background Use of general contracting Basic characteristics Risk in general contracting Standardized approaches to general contracting 4 Design and build Background Features of design and build contracts Use of JCT design build form Characteristics of CD 81 Risk in design and build Approaches to design and build 5 Management contracting Background Use of management contracting Contents of MC 98 Risk in management contracting Approaches to management contracting 6 Construction management Background Use of construction management contracts Contents of construction management contracts Allocation of risk in construction management Approaches to construction management 7 Procurement and contract choice Types of risk in construction contracts Dealing with risk Allocating risk through methods of payment Selecting procurement methods Contract choice 8 Tendering and contract formation The meaning of construction contracts The formation of contracts by agreement Contracts made by tender 9 Liability in contract and tort Express terms Exemption clauses Incorporation by reference Implied terms Liability in tort for negligence 10 Contractor’s obligations Standard of work Statutory obligations Co-ordination and management Transfer of materials 11 Employer’s obligations Implied obligations Employer’s obligations under JCT 98 Responsibility for the contract administrator Responsibility for site conditions Health and safety 12 Responsibility for design Design management Design duties in law Legal responsibility for design 13 Time Commencement Progress Completion Contractor’s obligations after completion Extensions of time 14 Payment Employer’s obligation to pay The contract sum Variations Fluctuations Retention money 15 Contractors claims for loss and expense Contract claims and damages Grounds for contractual claims Claims procedures Quantification of claims 16 Insurance and bonds Insurance Bonds and guarantees 17 Role of the contract administrator Contract administrator as the employer’s agent Contract administrator as independent adjudicator 18 Health and safety obligations Objectives of the CDM regulations Application of the SDM regulations Obligations of the parties Sanctions 19 Sub-contract acts Reasons for the prevalence of sub-contracting The legal basis of sub-contracting The contractual chain Domestic sub-contracts Defaults sub-contracts Rights of sub-contractors 20 Nominations Reasons for employer selection of sub-contractors Selection procedures Defaults of nominated sub-contractors Right of nominated sub-contractors 21 Financial remedies for breach of contract General damages Liquidated damages Quantum meruit claims Non-payment as a contractual remedy 22 Defective buildings and subsequent owners Claims in negligence Alternative forms of legal protection 23 Supension and determination of contracts Suspension of work Termination for beach at common law Determination under JCT 98 and related sub-contracts Determination on neutral grounds Frustration of contract 24 Non-adversarial dispute resolutions Background to disputes The nature of construction disputes The role of the contract administrator Methods of dispute resolution Incorporating alternative dispute resolution procedures 25 Adversarial dispute resolutions Adjudication Arbitration Litigation Arbitration or litigation? References
LAW AND CONTRACT MANAGEMENT
Contents
Introduction
Statutes
Glossary
1 UK construction industry context
The nature of the industry
The nature of professionalism in construction
The nature of projects
Procurement methods
2 Roles and relationships
Consultant roles
Professional services agreements
Architect
Typical conditions in professional services agreements
Integrated documents
3 General contracting
Background
Use of general contracting
Basic characteristics
Risk in general contracting
Standardized approaches to general contracting
4 Design and build
Features of design and build contracts
Use of JCT design build form
Characteristics of CD 81
Risk in design and build
Approaches to design and build
5 Management contracting
Use of management contracting
Contents of MC 98
Risk in management contracting
Approaches to management contracting
6 Construction management
Use of construction management contracts
Contents of construction management contracts
Allocation of risk in construction management
Approaches to construction management
7 Procurement and contract choice
Types of risk in construction contracts
Dealing with risk
Allocating risk through methods of payment
Selecting procurement methods
Contract choice
8 Tendering and contract formation
The meaning of construction contracts
The formation of contracts by agreement
Contracts made by tender
9 Liability in contract and tort
Express terms
Exemption clauses
Incorporation by reference
Implied terms
Liability in tort for negligence
10 Contractor’s obligations
Standard of work
Statutory obligations
Co-ordination and management
Transfer of materials
11 Employer’s obligations
Implied obligations
Employer’s obligations under JCT 98
Responsibility for the contract administrator
Responsibility for site conditions
Health and safety
12 Responsibility for design
Design management
Design duties in law
Legal responsibility for design
13 Time
Commencement
Progress
Completion
Contractor’s obligations after completion
Extensions of time
14 Payment
Employer’s obligation to pay
The contract sum
Variations
Fluctuations
Retention money
15 Contractors claims for loss and expense
Contract claims and damages
Grounds for contractual claims
Claims procedures
Quantification of claims
16 Insurance and bonds
Insurance
Bonds and guarantees
17 Role of the contract administrator
Contract administrator as the employer’s agent
Contract administrator as independent adjudicator
18 Health and safety obligations
Objectives of the CDM regulations
Application of the SDM regulations
Obligations of the parties
Sanctions
19 Sub-contract acts
Reasons for the prevalence of sub-contracting
The legal basis of sub-contracting
The contractual chain
Domestic sub-contracts
Defaults sub-contracts
Rights of sub-contractors
20 Nominations
Reasons for employer selection of sub-contractors
Selection procedures
Defaults of nominated sub-contractors
Right of nominated sub-contractors
21 Financial remedies for breach of contract
General damages
Liquidated damages
Quantum meruit claims
Non-payment as a contractual remedy
22 Defective buildings and subsequent owners
Claims in negligence
Alternative forms of legal protection
23 Supension and determination of contracts
Suspension of work
Termination for beach at common law
Determination under JCT 98 and related sub-contracts
Determination on neutral grounds
Frustration of contract
24 Non-adversarial dispute resolutions
Background to disputes
The nature of construction disputes
The role of the contract administrator
Methods of dispute resolution
Incorporating alternative dispute resolution procedures
25 Adversarial dispute resolutions
Adjudication
Arbitration
Litigation
Arbitration or litigation?
References
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