A court has ruled that a subcontract did not contain an implied term requiring a subcontractor to proceed regularly and diligently. Its obligation was limited to completing on time.
The case, Leander Construction v Mulalley, is likely to have widespread application, according to Mark Clinton, a partner at law firm Thomas Eggar. …
Adjudication is a procedure for resolving disputes without resorting to lengthy and expensive court procedure. It has become increasingly popular in construction contracts as a fast and efficient means of resolving disputes.
Adjudication is now a statutory requirement in Malaysia, and Qatar is considering making it mandatory for its World Cup projects. …
By Becky Johnson
Implied terms in construction contracts (or lack of) and instructions to vary works can cause problems for developers carrying out construction works. These issues were considered in two recent cases: Aspect Contracts (Asbestos) Limited v Higgins Construction Plc and MT Højgaard A/S v E.On Climate and Renewables UK Robin Rigg East Ltd.1
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The Technology and Construction Court has thrown out a contractor’s attempt to rely upon the prevention principle to excuse the delay on a project. The contractor alleged that the delays had been caused by the employer and the statutory undertakers. …
Contractor cannot rely upon the prevention principleRead More »
It has been said that an army marches on its stomach. Contractors and subcontractors in the construction industry run on cash. Lord Denning many years ago made the oft repeated phrase that cash flow is the lifeblood of the construction industry and this sentiment is still relevant today. Estimators when preparing tenders usually concentrate on building profits into the price. Of equal importance is the amount of working capital required to fund the contract and the need to keep the amount to a minimum. The payment terms are therefore crucial to every contractor and subcontractor. Certification and payment should be the subject of careful strategy and planning. …
