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GLOSSARY
A contract where the amount to be paid for the work carried out is based on the remeasurement of work after it has been carried out, usually against a schedule of rates contained in the contract.
PRACTICE NOTES
This Practice Note provides an introduction to the FIDIC Conditions of Contract for Design, Build and Operate Projects 2008, commonly known as the Gold Book 2008. For what type of project is the Contract suitable? The FIDIC Gold Book 2008 is a design, build and operate contract (‘DBO’)—for general information on DBO contracts, see Practice Note: DBO contracts. It assumes a greenfield design-build-operate scenario with a 20-year operation and maintenance period. As written, it is not suitable for brownfield projects, ie the upgrading of an existing facility. The FIDIC DBO Contract Guide (1st edition, 2011—published by FIDIC) states that the FIDIC Gold Book might be suitable for: ‘infrastructure projects where the resulting facility will often produce an income or revenue for the Employer and where the Employer might not have the resources or experience to operate the facility himself and might otherwise consider engaging a service provider or operator.’ There is an assumption that the Contract will be awarded to a single contracting entity,
Q&As
Right to work checks A correctly conducted right to work check can provide an employer with a statutory excuse against a civil penalty for employing a person illegally, should it be that the employee in question does not have, or loses, the right to work at some point during the employment. To obtain the excuse, the employer must show that it has taken particular steps during the right to work check. Whatever the circumstances of the worker’s illegality a valid right to work check will, with one important exception, act as a statutory excuse for the employer against a civil penalty. The sole exception to this is where the employer has had knowledge ‘at any time during the period of employment’ that the employment was unlawful. The use of the phrase ‘at any time’ suggests
Q&As
This Q&A has assumed that the worker has employee status, but the response also includes some information regarding duties owed by a worker or consultant. The employment status of the individual may be relevant when considering the scope of the duties that are owed to the employer. For information on employee and worker status generally, see Practice Notes: Employee status and Worker status. This response assumes that the worker has employee status but also includes some information regarding duties owed by a worker or consultant. Terms of the contract The contract of employment may be made up of all or any of the following: • express terms (which may be written or oral) • implied terms • imposed terms • incorporated terms For more information generally, see Practice Notes: Types of contractual term in employment and The term of trust and confidence. Duties of a worker or consultant In the case of a consultant, the obligations implied into the relationship between the
PRACTICE NOTES
This Practice Note considers if and when a duty of good faith may be implied into a construction contract, and also looks at some of the standard form construction contracts which contain express obligations to act in good faith, including their effect on the parties’ obligations. It is a long established principle that there is no general duty of good faith in English law (unlike many other legal systems). There are only very limited categories of contract where such a duty applies, including certain insurance and employment contracts and fiduciary relationships. A universal duty to act in good faith will not therefore automatically be implied into a construction contract. Several standard form construction contracts include express obligations to act in a spirit of good faith, but, as this Practice Note considers, it is likely that this would only have limited effect on the parties’ obligations. The case of Yam Seng seemed as if it might open the door to introducing a general implied duty in commercial contracts for the parties to act in good faith. This
NEWS
Commercial analysis: The Court of Appeal recently considered the factors to be taken into account in determining the reasonableness of a term excluding the statutory implied term as to quality in either a hire purchase agreement or an agreement based on a party’s standard terms of business. Written by Martin Hevey, senior associate at Herbert Smith Freehills.
PRACTICE NOTES
This Practice Note contains links to the standard residential pre-contract enquiries. For general guidance on raising and responding to enquiries before contract, see Practice Note: Residential conveyancing—enquiries before contract. For guidance on enquiries before contract in relation to commercial property, see Practice Note: Commercial Property Standard Enquiries—CPSE. Enquiries for use in residential conveyancing transactions The following enquiries before contract are for use in residential
Q&As
We have assumed that the purchasing company in question was not subject to any insolvency process immediately prior to its dissolution. It is also assumed that the agreement entered into is in nature similar to a conditional contract or option exercisable upon the happening of specific events. The dissolved company has a contingent personal right to purchase property under the agreement. A conditional contract is an agreement that only works if an uncertain event actually occurs. It is an agreement conditional
PRACTICE NOTES
This Practice Note examines the nature of zero hours contracts. It includes absence of mutuality of obligation, casual workers, as required or as needed, employment contract without obligation, piece work, on call, flexibility, over-arching or umbrella contracts, assignments, employee or worker status, continuity of employment, national minimum wage (NMW), statutory sick pay (SSP), working time and holiday entitlement and accrual, discrimination protection, part-time workers, pension auto-enrolment, TUPE 2006 and the pros and cons of zero hours contracts. It does not cover the statutory protections available to workers and employees on zero hours contracts and on lower incomes, relating to unenforceable exclusivity clauses and protection from detriment and unfair dismissal. These are covered separately in Practice Note: Exclusivity clauses—protections for low-income and zero hours workers. In this Practice Note, we use the term ‘employer’ to mean the hiring party in a contract for work, whether or not the individual being hired is an employee or a worker. We generally use the term 'worker' (which includes an 'employee' in the narrow sense) for the individual undertaking the work, unless the
GLOSSARY
The Contract between Project Co and the ICT Contractor for the delivery of ICT services and/or infrastructure.
Q&As
Since the advent of the Law of Property Act 1925 it has been possible to own real property legally in joint names only as joint tenants. The legal owners hold the beneficial interest on trust, ordinarily for themselves, either as equitable joint tenants (in which case they each own the whole and on the death of one their interest is extinguished with the other owning the whole under the doctrine of survivorship) or as equitable tenants in common, meaning that they own defined shares. The contract to sell the property to C will almost certainly involve a transfer of the legal as well as the beneficial interest. Where trustees are appointed it is axiomatic
Q&As
The Transfer of Undertakings (Protection of Employment) Regulations 2006, SI 2006/246 (TUPE 2006) provide that, where there is a relevant transfer, there is a statutory novation of the employment contracts of the transferring employees: the transferee effectively steps into the shoes of the transferor. A relevant transfer does not terminate the contract of employment of any person employed by the transferor and assigned to the organised grouping that is subject to the transfer. Instead, the contract of employment has effect after the transfer as if originally made between the employee and