Pre-construction activities

The traditional method of procuring a construction project where the employer and its design team finalise their requirements first and then send the documents out to contractors for them to submit tenders is being used less frequently. The rise in different forms of procurement and the need to reduce pre-construction timetables, combined with a realisation that early contractor involvement can be very useful, has resulted in the increasing use of forms of pre-construction agreements and two stage tendering. Two regularly used forms of agreement utilised before a building contract is entered into are letters of intent and 'Pre-Construction Services Agreements' (PCSAs).

Other issues of significance during the pre-construction stages of a project include demolition and ground conditions.

Letters of intent

A letter of intent is essentially a written expression of a party's intention to enter into a contract at a later stage. Traditionally, the advice given to employers has been not to enter into letters of intent if possible, ie to avoid entering into contractual relations, until all of the proposed contract terms are agreed. As letters of intent are by their nature very brief, litigation frequently arises

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Powered by Lexis+®
Latest Construction News

Defence strike out—still leaves a hill to climb in proving the claim in the absence of the defendant and their evidence (One Hyde Park v Laing O’Rourke)

Construction analysis: The Technology and Construction Court (TCC) awarded damages totalling approximately £35 million against a main contractor for construction defects in a luxury residential development. The claim by the freehold owner, under a collateral warranty, concerned serious defects at One Hyde Park including corroded chilled water pipework, failed butterfly valves, defective soldered joints and a non-functioning pantograph cradle. The defendant participated fully in proceedings until withdrawing funding and entering liquidation just before the February 2025 trial date despite its parent company's strong financial position. Following the defendant’s elective withdrawal, the court struck out the defence under CPR 39.3(1) but still required the claimant to prove its case, with the court's ability to test evidence being heavily constrained in the absence of cross-examination. The status of factual and expert evidence, where the defendant is not represented or present at trial, is considered and decided in this judgment, with reference to various legal authorities. Through examination of the evidence, including analysis of joint expert statements, the court found systematic breaches of the JCT contract through poor installation workmanship and defective materials, while confirming that expert reports have no evidential status unless the expert is called to verify them on oath. The judge criticised the defendant's conduct as ‘commercially amoral’ and accepted unchallenged expert evidence on the substantial remedial costs.

View Construction by content type :

Popular documents