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PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Y options These are optional clauses in NEC3/NEC4 contracts (known as secondary options). Option
PRACTICE NOTES
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Z clauses These are bespoke clauses,
GLOSSARY
The Construction Industry Council (CIC) is a forum which represents professional bodies, research organisations and specialist business associations within the construction industry.
PRACTICE NOTES
Development of the rules CIMAR is the acronym for the Construction Industry Model Arbitration Rules, published by the Society of Construction Arbitrators (SCA) and the Joint Contracts Tribunal (JCT). In response to the Bill that was to become the Arbitration Act 1996 (AA 1996), the SCA initiated the production of model arbitration rules. These were for adoption by all construction institutions. A series of committees was established under the chairmanship of Lord Justice Auld, including a plenary group, a steering group and a drafting sub-committee which adopted the acronym CIMAR. The first edition of CIMAR was published in 1998 by the SCA. In 2005, the JCT published its own version of the CIMAR. The JCT also published revised versions in November 2011, June 2016 and April 2024 to coincide with its 2011, 2016 and 2024 suites of contracts, however there were no textual changes to the 2005 version. In essence, the Rules follow AA 1996. Sections of AA 1996 of immediate relevance are printed after the Rule in question, with other sections necessary to
GLOSSARY
The Construction Industry Scheme (CIS) is a tax regime affecting all payments made by contractors to sub-contractors in relation to construction operations (all as defined in the CIS). The definition of 'a contractor' can also include an employer.
PRECEDENTS
1 Construction Industry Scheme—for use where the landlord’s contribution is a reverse premium The Landlord and Tenant acknowledge that the Landlord’s Contribution is a reverse premium for the purposes of Income Tax (Construction Industry Scheme) Regulations 2005, Regulation 20 and therefore it is not a contract payment for the purposes of Finance Act 2004, Chapter 3, Part 3 and accordingly will be paid without deduction on account of tax thereunder. 2 Construction Industry Scheme—for use where landlord is making payment to the tenant for works and CIS will or may apply 2.1 In this clause 2: ‘Construction Industry Scheme’ the construction industry scheme as enacted by FA 2004, Chapter 3, Pt 3 and the Regulations ‘Contract Payment’ has the meaning given to it in FA 2004, s 60(1) ‘Contractor’ means a person who is a ‘contractor’ as defined for the purposes of FA 2004, Chapter 3, Pt 3 ‘FA 2004’ means Finance Act 2004 ‘hmrc’ means HM Revenue & Customs ‘Order’ means Finance
NEWS
Construction analysis: What happens when an employer under a building contract denies that it is a binding contract on the basis that a signed contract was not actually signed by a director or signed at all. This is what the court grappled with in this case. The court had to decide: (i) Did the employer sign the JCT contract?; (ii) If so, was the contract conditional on funding so that it did not bind the defendant until it had obtained funding?; (iii) If the contract was not conditional, was the claimant entitled to damages and to payment of the invoices that it raised for the costs of the hire of plant and equipment and for standstill charges? The court found that the JCT Contract had been signed by the employer. The lack of coherence and consistency with employer’s evidence with the contemporaneous evidence coupled with oral evidence in court from a key person from the employer who ‘was not an impressive witness’ was compelling. Written by Hamish Lal, partner at Hamish Lal Partners.
NEWS
The Construction Leadership Council has published its biennial report on, setting out its key priorities for 2026 and outlining progress made during 2025 under its four strategic pillars: building safety; net zero, resilience and circular economy; people and skills; and next generation delivery. Over the past year, it highlights establishing the Construction Skills Mission Board to support delivery of the £625 million Construction Skills Mission, developing over 40 competency frameworks, working with regulators to implement the Building Safety Act, responding to consultations on late payment and retentions, growing the CO2nstructZero programme to over 300 companies, and continuing to embed the Information Management Initiative Framework across industry and Government.
PRECEDENTS
These precedent clauses, provided by the Royal Institution of Chartered Surveyors (RICS) and the NEC, can be used to incorporate into a construction contract the Conflict Avoidance Process (CAP). The CAP involves the appointment of a Conflict Avoidance Panel—either in the contract or by agreement at a later time. The intention behind the clauses is for the parties to commit to the early identification of potential disputes, to promote collaborative working and the resolution of disagreements using conflict avoidance measures. From the RICS Dispute Resolution
PRECEDENTS
This Precedent green clause sets a carbon budget for construction projects, along with the financial budget, to reduce greenhouse gas emissions. This sustainability clause was produced by The Chancery Lane Project (TCLP) as ‘Willow's clause’
GLOSSARY
The time during which the Construction Contractor designs and builds the facilities.
GLOSSARY
The “Pre-action protocol for construction and engineering disputes” is a series of steps which should be undertaken when a dispute arises before litigation is commenced, unless agreed otherwise. Applies to all construction and engineering disputes (including professional negligence claims against architects, engineers and quantity surveyors).