A practical guide to construction contracts

8 February 2010 The Chartered Institute of Arbitrators, London

25 February 2010           Etrop Grange Hotel, Manchester

2 March 2010                The St John’s Hotel, Solihull, West Midlands

16 March 2010               Ramada Bristol North, The Grange, Bristol

RECENTLY REVISED COURSE

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COURSE BACKGROUND

·        This RECENTLY REVISED 1 DAY COURSE will consider the principles of contract law and its application to construction contracts and administration, including an examination of main terms and conditions, sub-contracts, potential problem areas and risk factors to consider.

OVERVIEW

GENERAL PRINCIPLES OF CONTRACT

·        What constitutes a binding contract?

·        Offer, tender, quotation, estimate, acceptance counter-offer; acceptance by conduct

·        Information and documentation to be provided to contractor/sub-contractor – its significance and contractual status

·        When can a tender be revoked?

·        What are the contractual consequences of revoking a tender?

MISTAKE AND MISREPRESENTATION

·        The effect of mistakes and misunderstandings

·        The nature of misrepresentations and pre-contract statements

CONTRACT TERMS AND CONDITIONS

·        Express/implied terms

·        Unfair contract terms UCTA 1977

·        Terms implied by statute – Sale of Goods Act, 1979; Sale of Goods (Amendment) Act 1994; Sale and Supply of Goods Act, 1994; Supply of Goods and Services Act, 1982; ‘The Construction Act` 1996; ‘Third Parties’ Act’ 1999

·        Essential conditions that are desirable for both parties

·        Standard forms of building contract – advantages and desirability

·        Problems of non-standard forms of contract

·        Choose the right contractual arrangement

ASSIGNMENT, NOVATION, SUB-CONTRACTORS, SUPPLIERS

·        The contractual chain

·        Assignment and novation – when appropriate

·        Sub-contracts, named sub-contractors

·        Concept and philosophy of sub-contracting; principal sub-contract conditions

·        Suppliers

PROBLEM AREAS

·        Practical completion

·        Slow/no progress

·        Force majeure and the implications

·        Assessment and allocation of risk

·        Extensions of time

·        Late payment

·        Finance/Interest: late payment of Commercial Debt (Interest) Act, 1998

ELEMENTS OF LIABILITY

·        What are common law damages and how are they assessed?

·        Liquidated and ascertained damages or general damages for delayed completion?

·        Provisions in standard forms of contract for recovery of loss and expense

·        Claims at common law

·        Limitation of action

·        Cause and effect

·        Defects – latent/patent

TERMINATION: AVOIDANCE AND SETTLEMENT OF DISPUTES

·        How a contract can be terminated

·        Rights of the parties on termination

·        Importance of understanding obligations and responsibilities of the parties

·        Mediation, Adjudication, Arbitration, Litigation