The law and management of building subcontracts

The Law and Management of Building Subcontracts......Page 5
Contents......Page 7
Definitions......Page 13
Preface......Page 15
Introduction......Page 17
Contract of tender......Page 18
Obligation post-tender......Page 19
Nature of the tender......Page 22
Amended tenders and other pre-contract requests......Page 23
Work contracted for......Page 26
Discrepancies between documents......Page 33
Conclusion of a contract......Page 34
Acceptance by signature......Page 36
Acceptance by conduct......Page 37
Letters of intent......Page 40
Subject to contract......Page 49
Capped price or expenditure......Page 51
Incorporation of terms – general principles......Page 57
Incorporation of terms – contractor's proposals......Page 74
Waiver......Page 76
New terms......Page 79
Terms arising in the course of dealing......Page 80
Failure to make express provision within an agreement......Page 82
Failure to conclude an agreement......Page 83
When terms are left to be agreed......Page 88
Unconscionable behaviour......Page 99
Introduction......Page 105
Pre-tender discussions......Page 106
Specified subcontractor......Page 107
Novation......Page 109
Naming and nomination......Page 114
Difficulties in third party selection......Page 119
Programme for work......Page 121
Programming differing trades......Page 123
Programming off-site or pre-site works......Page 127
Programme changes and amendments......Page 130
Alternative arrangements......Page 132
Programme where the subcontract period is not defined......Page 133
Programming following delay......Page 134
Subcontractor's programme......Page 136
Extensions of time......Page 137
Financial planning......Page 141
Coordination......Page 142
Introduction......Page 143
Enquiry and tender......Page 144
Post-tender, pre-subcontract......Page 145
The subcontract......Page 148
Pre-site and off-site works......Page 149
On-site work......Page 153
Payment......Page 157
Completion of the works......Page 159
General considerations......Page 162
The right to develop the design......Page 163
Limit of responsibility......Page 165
Design changes by the specifier......Page 169
Interface of design responsibilities......Page 170
Construction Design and Management Regulations......Page 171
Aims and objectives of the subcontractor's designer......Page 172
Subcontractor's design under JCT......Page 173
Further design information......Page 174
Programming design development......Page 176
Contractor's Design Submission Procedures......Page 177
Shop or fabrication drawings......Page 178
Supports and fixings......Page 179
Temporary works......Page 180
Consultant designers as subcontractors......Page 182
Finalisation of the Sub-Contract Agreement......Page 184
The right to change......Page 186
Nature of change......Page 187
Pre-priced variations......Page 189
Nature of instructions......Page 192
Types of instruction......Page 193
Post-contract instructions......Page 194
Instructions relating to subcontractor design......Page 196
The effect of instructions......Page 199
Instructions requiring a change to work already carried out......Page 200
Necessary instructions......Page 201
Instructions resulting from discrepancies within the documents......Page 203
Timing of instructions......Page 204
Instructions other than in writing......Page 206
Instructions by third party......Page 209
Directions to cease work......Page 210
Duty to warn that instructions may give rise to defective work......Page 212
Duty to install to manufacturer's instructions......Page 213
Instructions where there is no provision within the subcontract......Page 215
Acceleration agreements......Page 216
Instruction to omit the remaining work......Page 219
Instruction to use supplementary labour......Page 220
Introduction......Page 222
Valuation of variations......Page 225
Contractor's directions......Page 238
Pre-priced variations......Page 239
Enhanced rates......Page 241
Loss and/or expense......Page 242
Prolongation......Page 249
Underutilised resources......Page 250
Delay......Page 252
Acceleration......Page 253
Global claims......Page 256
Quantum meruit......Page 260
Pre-valued prolongation costs......Page 262
Works carried out by others......Page 263
Costs arising out of the preparation of an account......Page 264
Costs in pricing variations......Page 265
Requirements of the HGCRA......Page 267
Application of the HGCRA in practice......Page 268
Payment mechanism......Page 270
Sum due to the subcontractor......Page 275
Specific provisions in the SBCSub and ICSub forms......Page 276
Specific provisions under other standard forms......Page 284
Retention......Page 286
Discounts......Page 291
Capped price or expenditure......Page 295
Withholding payment......Page 297
Works carried out off site......Page 303
Settlement......Page 304
Payments under several subcontracts......Page 310
Pay-when-certified clauses......Page 311
Pay-when-paid......Page 314
Interest......Page 317
Financing costs......Page 324
Payment of an adjudicator's decision......Page 328
General principles......Page 335
The effect of completion......Page 336
Completion of the subcontract works......Page 337
Practical completion......Page 340
Sectional completion and partial possession......Page 343
Beneficial use or occupation......Page 345
Notification of completion......Page 346
Special cases......Page 347
Failure to complete on time......Page 348
Guarantees......Page 350
The subcontractor's obligations for quality......Page 352
The subcontractor's obligations by reason of the specification......Page 355
The subcontractor's obligations for time......Page 357
Loss and/or expense......Page 362
Establishing the obligation......Page 368
Temporary disconformity......Page 369
Contractor's right to rectify the subcontractor's defects......Page 375
Differing obligations......Page 378
Interruption to the progress of subcontract works......Page 379
Valuation and payment by the contractor......Page 380
Omission of work to enable it to be done by another......Page 381
Introduction......Page 383
Determination under the subcontract......Page 384
Determination by the contractor......Page 385
Determination by the subcontractor......Page 396
Determination because of the contractor's failure to pay......Page 399
Determination on the grounds that progress is insufficient......Page 401
Determination when time is of the essence......Page 405
Determination by way of a term incorporated from another contract......Page 406
Determination at common law......Page 408
Wrongful and invalid determination......Page 412
Suspension......Page 413
General......Page 417
Reasonable performance......Page 418
The burden of proof......Page 419
Where neither party is at fault......Page 420
Damages from and to the subcontractor......Page 421
Settlement between contractor and employer......Page 422
Delay to the subcontractor's work......Page 427
Damages when delay due to two or more subcontractors......Page 431
Undervaluation of the work......Page 435
The measure of damages......Page 436
Pre-ascertained damages......Page 439
Failure to pay by the final date for payment......Page 442
Damages where no agreed subcontract sum......Page 444
Timing of entitlement......Page 445
Damages for latent defects......Page 448
Costs of an expert's report......Page 449
Recovery of preliminary costs......Page 451
Contribution to head office overheads......Page 456
Exclusion and limitation clauses......Page 458
Loss of overheads and profit......Page 461
Incorporation of terms......Page 463
The subcontractor's obligations......Page 464
The sub-subcontractor's obligations......Page 465
Instructions and variations......Page 466
Payment......Page 467
Extension of time......Page 468
Management contracting......Page 470
Loss and/or expense by the works contractor......Page 471
Loss and/or expense by the management contractor......Page 474
Extension of time......Page 475
Dispute resolution......Page 476
Name borrowing......Page 478
Rights of third parties......Page 484
Introduction......Page 486
Construction of the subcontract......Page 487
Obligations of the parties......Page 490
Nature of a dispute......Page 491
When does a claim become a dispute?......Page 492
Claim or counterclaim......Page 494
Presenting a claim......Page 496
Contractor's difficulties – combining disputes under different contracts......Page 499
Methods of dispute resolution......Page 503
The process......Page 506
Nature of adjudication......Page 507
Matters that may be referred......Page 508
The parties to the adjudication......Page 509
The referral......Page 510
Notice of adjudication......Page 512
Appointment of an adjudicator......Page 514
Jurisdiction of the adjudicator......Page 515
Replies and further details......Page 517
Costs of adjudication......Page 518
The decision......Page 519
Enforcement......Page 520
The Housing Grants, Construction and Regeneration Act 1996, Part II......Page 530
The Late Payment of Commercial Debts (Interest) Act 1998......Page 538
Contracts (Rights of Third Parties) Act 1999......Page 542
Table of Cases......Page 544
Index......Page 554