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PRACTICE NOTES
Originally called 'Model Form A', 'MF/1' comprises Conditions of Contract for the design, supply and installation of electrical, electronic and mechanical plant. First published in 1903 by the Institution of Electrical Engineers (IEE), further editions followed throughout the twentieth century. In 1926 the Institution of Mechanical Engineers joined the IEE as publisher, widening the scope to cover mechanical works. The 1988 edition was renamed and combined with the export version—MF/1. This Practice Note looks at the 2014 Revision 6 version of the form (now published on behalf of the Institution of Engineering and Technology (IET) and the Institution of Mechanical Engineers). Other contracts in the Model Form suite include conditions for supply only (MF/2 and MF/3) and for professional services (MF/4). See Practice Notes: MF/2 Rev 2 (1999), MF/3 Rev 1 (2001) and MF/4 (2003). MF/1 is suitable for projects with a large element of mechanical, electrical and electronic plant—ranging from electricity generation, waste incineration, amphibious boats, fire safety equipment to automated manufacturing systems. Although not a part of MF/1, it would be common for
PRECEDENTS
1 You have become employed as a shop worker and are, or can be, required under your contract of employment to do the Sunday work your contract provides for. However, if you wish, you can give a notice, as described in the next paragraph, to your employer and you will then have the right not to work in or about a shop
NEWS
Construction analysis: The Supreme Court unanimously overturned the Court of Appeal’s decision on the interpretation of the termination provisions in the Joint Contracts Tribunal (JCT) Design and Build Contract 2016. The court held that a contractor cannot terminate under clause 8.9.4 for a repeated ‘specified default’ unless it has an accrued right to terminate under clause 8.9.3 (ie, where an earlier specified default had continued for the period for cure). The Supreme Court considered that this interpretation was consistent with the objective, natural meaning of the words of clause 8.9.4—and that, to find otherwise could lead to ‘extreme’ outcomes, enabling the contractor to terminate for relatively slight breaches.
Q&As
The Public Contracts Regulations 2015 (PCR 2015), SI 2015/102, reg 57, sets out mandatory and discretionary grounds for exclusion of economic operators. The grounds for exclusion are ongoing and contracting authorities must ensure that bidders deemed eligible to tender maintain their eligibility throughout the procurement process. PCR 2015, SI 2015/102, reg 57(8)(g) allows exclusion for poor past performance where the performance has been ‘significantly or persistently deficient’ and such poor performance has led to early termination, damages or other comparable sanctions. Eg failure to provide information on request, on its own, may not be sufficient to meet all parts of the test. It is only where such breach leads to early termination of that prior contract, damages or other comparable sanction that this exclusion ground is triggered. Accordingly, the contracting authority seeking to
Q&As
It is not strictly necessary to include the hard copy of the Joint Contract Tribunal (JCT) contract (or indeed any published construction contract) within an agreement for construction works—the parties may agree that the JCT terms are incorporated by reference. It is important, however, to ensure that the full name of the contract (including the edition) is stated, so that there is no ambiguity as to which version of the JCT terms are
Q&As
The Isle of Man The Isle of Man is a self-governing Crown dependency. It has never become part of the Kingdom of Great Britain or the UK and has never been part of the EU. It has its own system of laws, although some Acts of Parliament in Westminster have been extended to the Isle of Man. The Isle of Man is not listed as a member of the HCCH although it has made a declaration in respect of the Hague Service Convention, see here. Jurisdiction In relation to jurisdiction, the English courts and the islands courts would apply common
Q&As
Insurance data The claimant may have a right to obtain information about an insolvent installer under the Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010). The TP(RAI)A 2010 applies to more insolvency situations than the Third Parties (Rights Against Insurers) Act 1930 (TP(RAI)A 1930), specifically applying to a relevant person (ie the insured or the corporation or individual who has insurance cover against liabilities which have been incurred to a third party). One of the main improvements under the TP(RAI)A 2010 is to strengthen the third party's rights to obtain information about the rights transferred to him, allowing him to assess whether they are valuable or worthless. This enables him to make an informed decision on whether it is cost-effective to pursue the insurer. Under the TP(RAI)A 1930, the third party could incur considerable expense before discovering that the insurer was able to defeat his claim. For
PRACTICE NOTES
The contractual method by which a project sponsor decides to procure a construction project is a key factor in determining the cost-effectiveness, quality and overall success of the project and the project sponsor’s satisfaction with the end result. The choice will be influenced by the time available for tendering and for completion of the project, method of financing and the expertise of the construction contractor. What is a design and build contract? A project sponsor may choose to adopt the design and build approach to reduce the risks that it must bear. Design and build (D&B) procurement is a common procurement approach adopted by project sponsors undertaking a construction project. For the project sponsor, procuring a project via the D&B route offers a more integrated approach to project delivery than keeping the design and construction elements separate under traditional procurement (see Practice Note: Traditional procurement of construction contracts). Under D&B procurement, the project sponsor employs a main contractor under a D&B contract and the
Q&As
It is assumed that this query relates to a general commercial transaction between businesses and does not relate to real property. Where a simple contract or deed has been validly executed, despite the physical contract being ‘lost’, the agreement, which the lost document evidences, remains in full force and effect between the parties—as such any purported replication of its terms or replacement contract must account for this. The date of a contract is evidence as to when it was executed. It is important to distinguish between ‘backdating’ a contract (the practice of executing a contract but marking it with a date prior to its actual date of execution), and executing a contract
CHECKLISTS
This checklist is aimed at an employer client and outlines the steps an employer will typically take when seeking to effect changes to terms and conditions of employment that are not permitted by the employees' existing contracts. It reflects the Statutory Code of Practice on dismissal and re-engagement (Code) that came into force from 18 July 2024. For more information on the Code, see Practice Note: Changing terms and conditions of employment—Statutory Code of Practice on ‘fire and re-hire’. The Code states (among other things) that an employer should not raise the prospect of dismissal unreasonably early, as this can be detrimental to attempts to reach an agreed outcome. It also states that: • threat of dismissal should not be used as a negotiating tactic to put undue pressure on employees in circumstances where the employer is not, in fact, envisaging dismissal as a means of achieving its objectives • the employer should contact Acas for advice before raising the prospect of dismissal and re-engagement For a more detailed checklist, aimed at employment
Q&As
There is in fact no requirement that an employment contract be signed at all (electronically or otherwise): • there is no statutory obligation to this effect • contractually (under the law of England and Wales), an employment contract can be binding whether or not it is signed There is a statutory obligation on the employer to provide a written statement of certain particulars of employment within two months of the start of employment. There is, however, no requirement for such a written statement of particulars to be signed. An employer may (and often will) use alternative documents, namely a contract of employment or letter of engagement, instead of a written statement of particulars, incorporating other terms of employment. See Practice Note: Written statements of employment particulars—to 5 April 2020 [Archived] for further information. Express
Q&As
The Straightforward Consumer IVA Protocol 2016 (the Protocol) is aimed at what are known as straightforward consumer individual voluntary agreements (IVAs) comprising five years of monthly contributions from the debtor’s income and equity release from any property owned by the debtor, 54 months after the start of the IVA. The Protocol states that the possibility of a full and final settlement in the first year of the IVA would be an indicator that the debtor’s circumstances are unsuitable for the application of the Protocol. The question does not state that the third party lump sum payment in settlement would be in the first year of the IVA,