Conspiracy theory begs a new Bill

Article Abstract:

In cases where the contractor seems to be being deliberately deprived of money to which it is entitled by the developer, the architect and other parties to a building contract, a Commercial Charter could be of some use. In the recent experience of Mowlem in a development with Carlton Gate Development Company (CGDC), in which a dispute over liquidated damages was decided in Mowlem's favour but CGDC then called in the receiver, there was no proof that CGDC was deliberately acting to stop Mowlem receiving payment, but conspiracy can take place, with a dispute being created artificially either because the developer is in financial difficulties or because the developer wants to cause financial problems for the contractor.

Real estate developers, John Mowlem and Company PLC, Carleton Gate Development Co.

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Put your trust in new contract forms

Article Abstract:

The Electrical Contractors' Association has developed specialist engineering and construction (SEACC) main contracts and subcontracts that abolish bad debt risks and ensuing costly litigation. The employer deposits the sum of the contract into a trust account on behalf of the main contractors and subcontractors and pays out the money on the relevant dates. A referee is appointed to deal with disputes, such as variations and claims whose decision is binding unless appealed within 28 days. A contract for design is also included.

Electrical Contractors' Association

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Material responsibilities

Article Abstract:

A contractor was recently found liable after filling in a gap in a construction specification. In the case of Rotherham Council vs Haslam and M.J. Gleeson, the architect had omitted what kind of slag hardcore should be used. The judge agreed that the burden of responsibility was on the contractor under partial specification to supply the correct material instead of the architect or engineer.

Building, Developing, and General Contracting, Contract Construction, Construction industry, Laws, regulations and rules, Column, Construction contracts, Specifications

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