Why should you subscribe to Manual of Construction Agreements
The Manual of Construction Agreements is a comprehensive guide to the law and practice governing construction contracts, with a focus on the major standard form agreements. Originally written by Richard Cockram, one of the country's leading construction lawyers, it includes a comprehensive bank of expertly drafted amendments to the standard form agreements and a suite of precedents, together with guidance and drafting notes.
Construction drafting is a central part of commercial property transactions, raising complex issues of law, interpretation and procedure. The key to addressing these issues lies in having rapid access to draft forms of agreement and specialist expertise based on a sound understanding of industry practice, case-law and current legislation.
Benefits of the service include:
- An exhaustive suite of over 100 expertly drafted and comprehensively annotated forms and precedents, written from the perspective of end-users
- A 650-page statement of relevant law and practice - including detailed commentary on the principal industry-standard forms
- Updated twice a year to cover relevant developments in construction law and practice
- An introduction to contractual arrangements relating to construction procurement, the appointment of design consultants and related matters
- In-depth analysis of the relevant areas of law that have been the subject of recent developments in the form of new legislation or reported cases, or in which certain difficult problems remain to be resolved
- A new chapter and accompanying forms and precedents covering the FIDIC contracts, which are the most widely used forms for contracts internationally for the construction, plant and design industries.
Table of contents
Issue 29 August 2019In this issue, we have made update amendments to reflect the recent Court of Appeal judgments in BV Nederlandse Industrie Van Eiprodukten v Rembrandt Enterprises, Inc, which revisited the so-called ‘black hole’ or no loss issue. The courts have previously debated two ways to deal with transferred loss and thereby avoid the legal
‘black hole’: the ‘narrow’ and ‘broader’ grounds. The essential feature of the ‘broader’ ground is that the contracting party, although not itself suffering physical or pecuniary damage, has suffered its own damage, the loss of its performance interest, with the failure to provide the third party with the benefit that the contract breaker had contracted for the third party to receive.
Coulson LJ held that the ‘broader’ ground was good law but had to decide if, for it to apply, the benefit to the third party is the known object of the transaction. The known third-party benefit
is an essential component of the broader ground. We have also looked at Classic Maritime Inc v Limbungan Makmur SDN BHD, which has clarified that there is no general principle that it is not necessary to show ‘but for’ causation in order to invoke a force majeure clause. The innocent party is entitled to substantial damages even if it would never have received performance in any event.Statutory adjudication continues to generate updates: Sitol v Finegold considered whether the following precondition was enforceable: ‘A party may refer a dispute to the adjudicator if the party notified the other party of the dispute within four weeks of becoming aware of it’; in PBS Energo AS v Bester Generacion UK Ltd, the court has clarified the basis upon which the courts will allow adjudication decisions to avoid enforcement on the basis of fraud – an adjudicator’s decision should usually be enforced where the allegation of fraud should reasonably have been taken before the adjudicator and thus before the decision; J J Rhatigan & Co (UK) Ltd v Rosemary Lodge Developments Ltd makes clear that to establish a breach of natural justice it must be material. To resist enforcement, RLD had to establish:(1) that there was some plain breach of the rules of natural justice;(2) that that breach was material to the outcome of the adjudication; and(3) that that material breach was such that it would be unfair to enforce the decision.We have also made updates dealing with substantive contract law, notices of making good defects and the new BS EN ISO 19650 series, which introduces the concept of ‘Building information modelling (BIM) according to the ISO 19650 series’. There is no legal definition of what this is, but according to the transition guidance to the 19650 series (PD 19650-0:2019), BIM according to the ISO 19650 series covers what has been referred to in in the UK as BIM level 2, plus some aspects of what has been referred to as BIM Level 1 and BIM Level 3. We will continue to monitor this important area and issue updates accordingly.
Part A Law and Practice
- The Nature of Construction Contracts
- The JCT Contracts
- Non-JCT Construction Contracts
- Standard Form Consultants' Appointments
- Collateral Warranties and Third Party Rights
- Guarantee Bonds and Parent Company Guarantees
- Letters of Intent
- The CDM Regulations
- Relevant Legislation
- Dispute Resolution: Litigation and Arbitration
- Dispute Resolution: Adjudication, Expert Determination and ADR
- The Form and Content of Deeds and Documents
- The Execution of Deeds and Other Documents
Part B Forms
- Consultants' Appointments
- Amendments to JCT Contracts
- Amendments to ICE Contracts
- Amendments to NEC/ECC Contract
- Management Contracting
- Collateral Warranties
- Letters of Intent
- Surety Documents