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Q&As
Regulation 72 of the Public Contracts Regulations 2015 (PCR 2015), SI 2015/102 (SI 2015/102, reg 72) is aimed at clarifying the extent to which concluded public contracts may be amended without advertising a new tender process. The provisions concerning permitted modifications under SI 2015/102, reg 72, with the exception of the ground in SI 2015/102, reg 72(1)(a), do not expressly exclude the possibility of making modifications to a public contract which has been extended to the fullest extent provided for in the contract notice and in the contract documents. It is critical, however, that any modification made pursuant to SI 2015/102, reg 72 can be correctly justified by applying one of the grounds provided, some of which are considered below by way of example. SI 2015/102, reg 72(1)(a) provides: '(1) Contracts and framework agreements may be modified without a new procurement procedure
PRECEDENTS
Appropriate contract selection We want to discuss the approach that you should take when selecting the form of building contract to use in relation to [insert name/description of the project]. The first point is that the choice of contract should be appropriate for the sector that the works relate to. In the UK, there are a number of different standard form contracts which have been produced, the use of which depend predominantly on whether the works relate to the construction of buildings, infrastructure or civil engineering projects, energy projects, chemical/process plants or electrical and mechanical engineering projects. As the works in this case relate to [the construction of a building OR an infrastructure or civil engineering project OR an energy project
Q&As
The answer to this depends on whether the contract of employment is also to stand as the employee's written statement of particulars of employment (see Written statements of employment particulars—to 5 April 2020 [Archived]). Written statement of particulars of employment Every employee is entitled to receive a written statement containing certain details of their employment terms within two months of starting work. An employer may use an alternative document, such as a contract of employment or an offer letter and, in practice, most employers do this rather than provide a separate written statement. The required details are: • the names of the employer and employee • the date when the employment began (see Continuity of employment—When the continuous period starts) • the date on which the employee's continuous employment began (see Continuity of employment) • the scale or rate of pay or the method of calculating pay (see Pay and wages and National minimum wage) • the intervals at which the employee is entitled to be paid (ie weekly, monthly
PRACTICE NOTES
As set out in The economic torts—overview, the law makes provision to protect a person’s trade or business from acts which are considered to be unacceptable. For guidance on claims for: • the tort of intentional violation with the claimant’s rights in a judgment debt, see Practice Note: The Marex tort (interference with a judgment debt) • unlawful interference, see Practice Note: Economic tort of unlawful interference • conspiracy (both by lawful and unlawful means), see Practice Note: Civil conspiracy claims (economic tort) • based on unconscionable and intimidating conduct, see Practice Note: Economic duress—undue influence—tort of intimidation This Practice Note considers the economic tort of procuring a breach of contract (also known as inducing a breach of contract, sometimes called ‘interference with contractual relations’). Civil claims involving fraud and dishonesty often rely on pleading one or more of the economic torts, on which see Practice Note: Civil fraud—causes of action (heads of claim). What is the tort of procuring a breach of contract? The tort of procuring a breach of
PRECEDENTS
Building contract 1 Notwithstanding any other provision of this Contract, the term approval when used
Q&As
The Institution of Civil Engineers (ICE) previously published the 'ICE Conditions of Contract'. These were standard terms for use on civil engineering projects, which were first published in 1945. The ICE decided however to withdraw the ICE Conditions of Contract from sale, and instead, solely endorse the NEC3 suite of contracts. This took effect in August 2011. The ICE Conditions of Contract have since been
PRACTICE NOTES
What is insurance law? Insurance law can be split into three parts: • insurance contract law which governs the contractual relationship between insureds and insurers • the law of intermediaries which regulates insurance business which is transacted through agents (this is true for most insurance business) • insurance company law which is concerned with the financial soundness, probity and regulation of insurance companies This Practice Note largely deals with insurance contract law. For more information on insurance regulation, see our ‘regulation of insurance’ subtopic, including Insurance & Reinsurance—regulatory framework—overview and Insurance & Reinsurance—Regulated activities—overview. Reform of the insurance sector In January 2006 the Law Commission and Scottish Law Commission (together the Law Commissions) started consulting on reforming insurance contract law. Following the consultation, the Law Commissions’ work was broken into three sub-projects: • consumer insurance law reform: pre-contract disclosure and misrepresentation • insurance contract law reform: business disclosure, warranties, insurers’ remedies for fraudulent claims, and late payment • insurance contract law reform: insurable interest Consumer insurance law reform—pre-contract disclosure and misrepresentation Following
PRACTICE NOTES
This Checklist is intended to help a buyer’s solicitor carry out an initial review of the first draft of a contract for the purchase of commercial property issued by the seller by identifying headline points to check. Sometimes the seller’s solicitor will have drafted the contract without a full appreciation of all the issues that will need to be dealt with and so it is important for the buyer to be alive to anything missing at the outset and flag any likely issues or contract requirements as early as possible (even if only as a placeholder within the contract pending instructions or further information). Identification of seller and buyer The heads of terms may not define the parties accurately: • Companies House—assuming the seller is a company, the buyer’s solicitor should check at Companies House that the correct party and company number is mentioned in the heads of terms and that it matches the details shown in the title documents • if the seller is: ◦ an overseas company, partnership or other entity, the
PRACTICE NOTES
There are three main procurement routes used in UK energy projects: • engineering, procurement and construction (EPC) contract procurement • split EPC contract procurement • multi-party contract procurement This Practice Note provides a review of each of these methods, and discusses some of the benefits and disadvantages of each route and practical issues to consider. It is intended as a basic guide; professional legal advice should be sought before choosing a procurement option for your specific project. EPC contract procurement The EPC contract is the most common method of procurement for UK energy, large-scale and complex infrastructure projects. Under an EPC contract the contractor is responsible for the delivery of the total project including the design, engineering, procurement of the materials, construction and testing of the mechanical elements. For more information on EPC contracts see Practice Notes: Introduction to EPC contracts, EPC contracts—handover, testing and commissioning and EPC contracts—limits of liability. The diagram below illustrates the key contractual structure of a project procured using the EPC route with project finance backing. This structure
CHECKLISTS
The Agreement, Recitals, Articles and Contract Particulars at the start of a JCT contract set out the project specific details for the particular works to be carried out. It is very important that these are fully completed and that the details are correct to avoid ambiguity and disputes regarding what is required. This Checklist provides practical guidance as to how to complete the details including links to relevant Practice Notes which provide detailed information on the areas covered. It is aimed at those who are relatively new to dealing with JCT contracts. An employer will often arrange for the architect/contract administrator or other consultant to complete the particulars at the start of the contract and will then ask its lawyer to check the contract before the parties execute it. Alternatively, a lawyer may be asked to fill in all of the details but they will need input from the client or its consultants as to the details to be inserted. This Checklist can be used as a reference where completing or checking
Q&As
There are two issues that need to be considered when it comes to whether an employee can bring a breach for contract claim purely on the basis of a breach of the implied duty of trust and confidence: • the first is whether an existing employee can pursue a claim for breach of contract against their current employer based solely on the implied duty of trust and confidence, and if so • the second, on a practical level, is whether such a claim can be pursued in the employment tribunal, the High Court/County Court, or both In relation to the first enquiry, there is no doubt, on authority, that an employee can bring a claim for breach of contract that is based solely on
Q&As
Meaning of joint, several and joint and several liability For details on the meaning of the terms joint, several and joint and several liability and how such liability is established under a contract, you may find useful Practice Note: Joint, several, and joint and several liability and Precedent: Joint and several liability clause and the associated Drafting Notes. Privity