In the world of construction and property development, we cannot escape the realities that have come about from the Brexit crisis. The sphere of build costs and development appraisals have been hit by the uncertainty that has materialised from the way in which the situation has been handled. Despite the UK officially leaving the EU… Continue reading The Five-Year Problem for Developers
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Packaging of Works – What is the Best Way to Split out a Project?
The packaging of works by contractors to subcontractors and subcontractors to SMEs is widespread in construction dependent on the scope and nature of projects undertaken. How to package up works and what influences the decision as to how small to break the packages down is generally driven by the risk appetite of the main contractor,… Continue reading Packaging of Works – What is the Best Way to Split out a Project?
Special Purpose Vehicles and Construction Management
If you were to contact Companies House and ask them how many Special Purpose Vehicles or ‘SPVs’ are currently operating, they wouldn’t be able to tell you as they are not legal entities. SPV’s, or as they are also known ‘Special Purpose Entities’, are usually a limited company but could be a Limited Liability Partnership… Continue reading Special Purpose Vehicles and Construction Management
Prequalification Questionnaire Template
NEC3 vs NEC4
Whilst NEC has been in operation since 1993, it was in 1995 after the publication of Sir Michael Latham’s report, which describes the use of NEC as “extremely attractive”, that it became what is now the go to contract for major infrastructure contracts in the UK. NEC 3 was published in 2005 and updated in… Continue reading NEC3 vs NEC4
Adjudication vs Arbitration
The resolution of disputes in the construction industry is usually achieved through a tiered system of escalation, starting with mediation followed by adjudication, arbitration, and litigation. However, this is mostly driven by behaviours and established working relationships as, according to the Construction Act, a dispute can be referred to adjudication at any time. In some… Continue reading Adjudication vs Arbitration
The Housing, Grants, Construction and Regeneration Act (HGCRA) and the Scheme for Construction Contracts
In the 1980s, construction was considered to offer low value for money due to the adversarial nature of contract terms leading to high volume of disputes, coupled with a drive to award contracts on the lowest possible tender price. This created a race to the bottom whereby unsustainable contract prices were issued, high levels of… Continue reading The Housing, Grants, Construction and Regeneration Act (HGCRA) and the Scheme for Construction Contracts
Latent vs Patent Defects and How to Manage them
The occurrence of defects is an unfortunate part of construction activities, but with nearly all standard forms of contract containing clauses to deal with them, managing one should it arise can not be too difficult, can it? Administering contractual provisions works best when all parties accept that a defect has occurred, and that one party… Continue reading Latent vs Patent Defects and How to Manage them
Principle of Entitlement
Unless amended, all construction contracts contain the provision for changes to be made. This could be from the developer instructing them or by the contractor claiming that a relevant event, compensation event, variation etc has occurred. If it is the latter, and as a developer you’re receiving notices that require your attention, you will have… Continue reading Principle of Entitlement
Groundworks, Archaeology and Minimising Risk in Procurement
If you’re a Developer and you intend to proceed on a construction management basis then you’ll be procuring individual packages of works including groundworks and archaeology. Understanding the risk of excavating in the ground, what you can do to mitigate it, your own risk profile, and how to pass risk to the supply chain is… Continue reading Groundworks, Archaeology and Minimising Risk in Procurement