The Must Know Guide to Construction Contract Principles

Courses Overview:

This highly interactive 1 day course is delivered by practising barristers and adjudicators who are highly competent knowledge transfer speakers. The course has been designed to meet the needs of foundation and practitioner level delegates, and to give a greater understanding of UK construction contract law. It is aimed at anyone who has a contractual aspect to their job role, and would benefit from a rounded understanding of laws that underpin the majority of contracts in the construction industry.

The course begins by reviewing all the legal principles, including an understanding of the formation of contract, offer and acceptance, rejection and counter offer and acceptance. Delegates will then review the main contract terms and conditions and the impacts that arise from common mistakes. The aspects of contract breach, damages and claims are fully defined, discussed and reviewed leading onto potential problem areas and risk factors to consider.

Benefits of this course:

Brush up on knowledge of the Construction Act and Supply of Goods and Services Act
Gain understanding of the rudimentary concepts of Contract
Recognise legal principles relating to contract terms
Become conversant in conditions warranties and terms
Learn how to risk profiles for the different forms
Realise how subcontract relationships arise
Grasp the concepts of collateral warranties bonds parent company guarantees
Spot pitfalls in construction contracts
Comprehend the issues of damages, liquidated or unliquidated
Awareness of the dangers and procedures for termination
Benefit from a post seminar helpline facility

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General Principles of Contract
• What constitutes a binding contract?
• What is a ‘construction 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?
• Keeping a tender open
• Open invitations
• What are the contractual consequences of revoking a tender?
• Oral/written agreements

Mistake and Misrepresentation
• The effect of mistakes and misunderstandings.
• The nature of misrepresentations and pre-contract statements.
• Errors in pricing/scope.

Contract Terms and Conditions
• Express/implied terms
• Unfair contract terms
• Terms implied by statute – sale of goods, supply of goods and services, ‘The Construction Act, ‘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
• Different contractual arrangements – allocation or commercial risk
• Choose the right contractual arrangement

Sub-Contractors, Suppliers and Third Parties
• The contractual chain
• Assignment and novation – when appropriate
• Sub-contracts, named/nominated subcontractors – risk and responsibility
• Concept and philosophy of subcontracting; principal sub-contract conditions
• Suppliers

Problem Areas
• Practical completion
• Slow/no progress
• Force majeure and the implications
• Extensions of time
• Late payment
• Finance/interest: Late Payment of Commercial Debt (Interest) Act, 1998 and contract provisions
• Ownership of goods and materials

Elements of Liability
• What are common law damages and how are they assessed?
• Liquidated damages or general damages for delayed completion?
• Provisions in standard forms of contract for recovery of loss and expense
• Claims at common law
• Design liability – standards and allocation
• Limitation of action
• Cause and effect
• Defects – latent/patent/correction
• Defects liability period

Termination
• 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

The New Construction Act
• Brief review of the Local Democracy, Economic Development and Construction Act 2009 and its impact on payment and adjudication provisions.

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