The following Construction practice note provides comprehensive and up to date legal information covering:
If a party is said to have ‘design liability’, it means that it bears legal responsibility for all or part of the design of a construction/engineering project. Typically on a construction project, several consultants, and often the contractor and some of its sub-contractors, will be involved in producing and developing the design and will have ‘design liability’.
Parties with design liability may, however, be required to exercise different standards of care in relation to the design—some may be subject to an absolute obligation to ensure the completed design is fit for purpose, whereas others may merely be required to exercise reasonable skill and care. Responsibility for design is allocated in different ways depending on the procurement route selected and the parties may also expressly modify the standard of care required in relation to design in the building contract and consultant appointments. This Practice Note looks at the issues surrounding design and standards of care in what can be a contentious area between the employer and the construction/design team.
This Practice Note focuses on the relationship between the employer and the design team, but the same principles would apply if a third party were to make a claim against a designer (eg a funder, purchaser or tenant under a warranty'>collateral warranty). It also considers some of the other duties that designers on a construction project may have
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
Broadly, the doctrine of overreaching enables purchasers (which includes tenants and mortgagees) in good faith for money or money’s worth to rely solely on the legal title. In the case of registered land, this means the entries entered on the register of title, as it records ownership of the legal
Company directors are not, by virtue only of their office as director, automatically entitled under company law to remuneration for services as a director or to reimbursement of expenses incurred in rendering such services. Power to pay directors remuneration for their services will need to be
Definition of automatismAn act is done in a state of automatism if it is done by the body without control by the mind, (eg it is a spasm or a reflex), or if it is done by a person who is not conscious of what they are doing. The act may be described as involuntary, but will not be regarded as such
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