The Foundations of Engineering Contracts

Book Cover......Page 1
Half-Title......Page 2
Title......Page 3
Copyright......Page 4
Contents......Page 5
Introduction......Page 9
Prologue......Page 13
1.1 THE PROJECT AND ITS ENGINEERING CONTRACTS......Page 15
1.2  HOW CONTRACTS ARE FORMED......Page 17
1.2.1  Contracts formed solely by actions......Page 18
1.2.2  Contracts formed verbally......Page 19
1.2.4  Contracts required by law to be ‘evidenced in writing’......Page 20
1.2.5  Written contracts......Page 21
1.2.6  Standard order forms......Page 23
1.3.1  Express terms......Page 24
1.3.2  Implied terms......Page 25
1.4  AVOIDANCE OF AMBIGUITY......Page 27
1.5  BREACH OF CONTRACT: CONDITIONS AND WARRANTIES......Page 29
1.6  THE PRIVITY OF CONTRACTS......Page 31
1.7  COLLATERAL CONTRACTS......Page 33
1.8  VARIATIONS TO CONTRACTS......Page 34
1.8.1  Variations to specification......Page 35
1.9  PROPERTY IN, POSSESSION OF AND OWNERSHIP......Page 36
2.1  LEGAL REQUIREMENTS......Page 39
2.2  THE LEGALITY OF CONTRACT SUBJECTS......Page 40
2.3  LEGAL CAPACITY OF PARTIES TO ACT......Page 41
2.4  INTENTION FOR CONTRACT TO BE SUBJECT TO LAW......Page 44
2.5.1  The offer......Page 45
2.5.2  Invitations to treat......Page 46
2.5.3  Legal termination of an offer......Page 47
2.5.4  Acceptance......Page 48
2.6  CONSIDERATION......Page 50
2.8  INSTRUCTION TO PROCEED......Page 52
3.1  DIVISIONS OF UK LAW: THE RIGHT CHARGE......Page 54
3.3  UNDUE INFLUENCE......Page 56
3.4  MISREPRESENTATION......Page 58
3.5  MISTAKES......Page 61
3.6.1  Non-existence......Page 62
3.6.4  Time factor......Page 63
3.6.6  Insolvency......Page 64
4.1  WHAT IS A LEGAL ‘AGENT’?......Page 66
4.2  SCOPE OF AGENT’S AUTHORITY......Page 67
4.3.1  By a simple letter from an executive of the organization......Page 68
4.3.2  By a more formal and legal document......Page 69
4.4  A KNOWN-PRINCIPAL AGENT......Page 70
4.5  THE AGENT WITH AN ‘UNDISCLOSED PRINCIPAL’......Page 72
4.6  PAYMENTS OF THE CONTRACT PRICE......Page 73
4.7  THE END OF AN AGENCY......Page 74
4.8  AGREEMENTS WITH SO-CALLED ‘AGENCIES’......Page 75
5.2.1  Contracts under hand......Page 77
5.2.2  Contracts under seal......Page 78
5.3.1  Bonds in connection with contracts......Page 81
5.3.3  A Bond of Due Performance......Page 82
5.3.5  A Plant-Performance Bond......Page 83
5.4.1  Guarantee......Page 84
5.4.2  Warranty......Page 86
5.5  SPECIFIC PERFORMANCE......Page 87
5.6  ‘QUANTUM MERUIT’......Page 88
5.8  TORT......Page 89
5.9  ‘FORCE MAJEURE’......Page 90
5.10  LICENCES: PATENTS, COPYRIGHTS AND DESIGNS*......Page 91
5.10.1  Patents*......Page 92
5.10.3  Copyright*......Page 95
5.10.4  Ownership......Page 97
6.1  EXPORTS......Page 98
6.2  METHODS OF TRANSPORTATION......Page 99
6.3  TIR FACILITIES......Page 101
6.4  INCOTERMS 1980: CONTRACTUAL REQUIREMENTS......Page 102
6.5  BILLS OF LADING: AIR CONSIGNMENT NOTES......Page 103
6.6  MARINE INSURANCE......Page 105
6.7  ECGD......Page 106
6.8  THE WORLD BANK......Page 108
6.9  PAYMENT OF THE CONTRACT PRICE......Page 109
6.10  LETTERS OF CREDIT......Page 112
6.11  BILLS OF EXCHANGE......Page 113
7.1  SUBCONTRACTING, SUBLETTING......Page 117
7.2  PREFERRED SUBCONTRACTORS......Page 120
7.3  NOMINATED SUBCONTRACTORS......Page 121
7.4  PRIME COSTS......Page 124
7.4.1  Provisional sums......Page 125
7.5  CONTRACT ASSIGNMENT......Page 126
7.5.1  So-called ‘assignment’ of complete contracts......Page 127
7.6  INSOLVENCY OF CONTRACTORS......Page 128
7.6.2  Contractor’s materials and plant brought to site......Page 130
8.1  QUALITY ASSURANCE......Page 133
8.2  RELIABILITY......Page 136
8.2.2  The advent of modern methods......Page 137
8.2.3  New materials......Page 138
8.3  THE LIMITATION ACTS......Page 139
8.4  THE LATENT DAMAGE ACT 1986......Page 141
8.5  STRICT LIABILITY: THE CONSUMERS PROTECTION ACT 1987......Page 144
8.6  THE HEALTH AND SAFETY AT WORK, ETC. ACT 1974......Page 147
8.7  OCCUPIER’S LIABILITY TO VISITORS TO SITE......Page 149
8.8  DISPUTES AND ARBITRATION......Page 151
8.8.1  Discovery of documents......Page 154
8.8.3  Award......Page 155
8.10  COMMERCIAL COURTS......Page 156
APPENDIX 1  Typical terms used in engineering contracts......Page 158
Classification by method of negotiation......Page 160
Classification by the objective of the contract......Page 161
APPENDIX 4  Terms often met in commercial transactions......Page 162
Goods sent from a UK seller to a buyer in an overseas country......Page 166
A. Issued by professional institutions......Page 167
C. For international use......Page 169
APPENDIX 7  Typical contents of the Major Model Conditions of Contract used in the engineering industry......Page 170
APPENDIX 9  Declaration of bona-fide tender (example)......Page 172
APPENDIX 11  Typical collateral agreement between employer and intended nominated subcontractor......Page 174
APPENDIX 12  Typical Bond of Guarantee by an approved surety......Page 179
APPENDIX 13  Typical Instruction to Proceed......Page 181
APPENDIX 14  The Copyright, Designs and Patents Act 1988: a brief synopsis......Page 183
Index......Page 185