The following Construction practice note provides comprehensive and up to date legal information covering:
The nature of construction projects, the contracts agreed and the law surrounding them, means that claims are commonly made by one or more parties. This Practice Note highlights the claims that construction practitioners are likely to encounter most frequently, such as those relating to defects, additional time to complete the works (or claims by employers for late work), variations and payment. Other less common claims that may arise, but are not covered here, include claims relating to copyright infringement, nuisance, trespass and health and safety.
Claims may be made against one or more of the construction team by the employer, during or after a construction project has finished. Common claims, as discussed below, include:
Defects in the works or design errors
Delay to completion of the works
Claims may also be brought against one or more of the construction team by third parties. If, for example, a project is sold after completion, third parties (such as purchasers or tenants) may take an assignment of the benefit of the construction contract, receive a warranty'>collateral warranty, or obtain third party rights. If defects arise after completion of the works, these third parties might then make a claim against one or more of the construction team under the construction contract or collateral warranties/third party rights. For more information on these situations generally, see the following:
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Tipping off and prejudicing an investigationIt would undermine the benefit to the authorities if, a suspicious activity report (SAR) having been made, the alleged offender were to be made aware of the interest in their activities so that they could take steps to cover up their misdeeds or disappear.
ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
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This Practice Note is an archive of news from the Loan Market Association (LMA) on LMA documentation and related topics. It covers LMA updates from early 2013 to January 2016. For the latest LMA developments since January 2016, see Practice Note: Loan Market Association (LMA)—latest news on
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