Abstracts » Construction and materials industries

Why should banks be secure

Article Abstract:

The UK government is looking at the way insolvency cases are handled in the UK, in order to give all creditors a fairer share of the assets. Subcontractors often find they are unable to recover their losses when the main contractor is in receivership. The receiver is likely to have been put in place by the bank and therefore will work towards recovering the banks' assets and their own fees. Even if the sub contractors are secured creditors they are unlikely to be able to recover materials and goods. As a result the subcontractors may also be forced out of business.

United Kingdom, Interpretation and construction, Bankruptcy law

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Codes with a message

Article Abstract:

The UK Construction Industry Board's codes for the selection of main contractors and selection of subcontractors by a main contractor are of very high quality. They make it clear that those responsible for initiating the tendering process must stick to clearly defined methods for cutting tendering costs. However, there are some indications that the codes may not be fully adhered to. The construction industry has traditionally operated on the basis of short-termism, and many companies will not be prepared to follow the codes if their rivals do not.

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Love me tender

Article Abstract:

The decision in Harmon vs House of Commons indicates that UK law is moving in the direction of the tendering process giving rise to an implied contract imposing an obligation on the client to act fairly. In this case, Harmon argued that the submission of its tender gave rise to an implied contract, by which the House of Commons was obliged to tender fairly. This case has made it possible for tenderers to challenge awards in relation to all public sector work.

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