Retention is a mechanism commonly used in construction contracts where a percentage of the contract sum (usually between 3% and 5%) is deducted from interim payments to the contractor as security for the employer for defects in the works. Half of the withheld retention is usually paid to the contractor on practical completion and the […]
Introduction. There is often some confusion regarding the difference between “Privileged”, “Without Prejudice” and “Without Prejudice Save as to Costs” documents. The purpose of this article is to briefly explain what each of the above noted terms mean and to illustrate what effect those terms have upon the documents in question. Privileged documents. “Privileged” documents […]
Trustees of Stokes Pension Fund Ltd v. Western Power Distribution (South West) Plc. Prior to issuing proceedings, WPD wrote a letter to TSPF marked “without prejudice save as to costs” offering to settle the claim for £35,000. The offer was said to be open for acceptance for 21 days. TSPF did not accept the offer, […]
Philip Adams explains why contractors should not be afraid of reporting delays to their employers. Throughout my career I have encountered a general reluctance and even fear on the part of contractors when it comes to reporting delays and additional costs to the employer. To a certain extent this reticence is understandable. A contractor is […]
THE PERCENTAGE GAME Remember Ian McGlinn? He was last seen in the High Court suing everyone in sight after ordering the demolition of his Jersey dream home. Here he is again, still in court, trying to get the other parties to pay his legal costs. “The judge could not bring himself to declare Mr McGlinn […]
CIRCUMSTANCES CHANGE CASES The case of Dundas vs Wimpey, which has now been resolved in favour of Wimpey after a 3:2 decision in the House of Lords, shows that the payment clauses in the Construction Act are not set in stone. “There was a balance to be struck between making people play fair, pay fair […]
Introduction Litigation can be a very expensive and time consuming process that can be a real drain on a party’s resources. In some cases, the costs of fighting litigation and recovery of those costs can become as important to a party as winning the claim. Mediation is generally seen as a successful method of resolving disputes […]
1. Records, Records, Records! Never truer than when you are seeking to support a prolongation cost claim. Every Riyal or Dirham must be supported in the form of invoices, payment receipts, salary slips, bank statements, delivery notes, etc. etc. etc. Be prepared to be quizzed on every single element of your claim. If you can’t […]
VICTORIOUS LOSERS EU rules insist that public contracts be run in a fair and open way. So, if you miss out, and you think the client wasn’t fair, you can ask a court for damages. A lot of damages… “Thanks to joining a fancy club called the EU, there is a law against it – […]
Disruption. We all know it happens, repeatedly, and we all know how difficult it is to get a disruption claim accepted. The gold standard test for disruption is the so-called ‘measured mile’ which requires an approved programme, an area of work representative of the general project in which no changes occurred and work proceeded as […]
An approach followed by the case of OHL v Gibraltar[1] On a project for a tunnel and dual carriageway, a variation instruction is issued on 1 June to widen a part of the dual carriageway. At the time of the instruction, that part of the carriageway is not on the critical path. Although it is […]
Risk in building contracts As all contractors will know, building contracts are fraught with risks. The contractor is at risk that he has or has not priced the job properly. Risks in relation to ground conditions usually fall on the contractor. Delays by circumstances which do not carry an entitlement to an extension of time […]