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PRACTICE NOTES
Commercial Property Standard Enquiries (CPSE) The Commercial Property Standard Enquiries (CPSE) have become the industry-standard pre-contract enquiries for commercial property transactions: • CPSE.1: General pre-contract enquiries for all commercial property transactions
Q&As
For the purposes of our response we have assumed that the contract referred to was agreed after the Consumer Rights Act 2015 (CRA 2015) came into force on 1 October 2015. CRA 2015 applies where there is an agreement between a trader and a consumer for the trader to supply services, if the agreement is a contract. CRA 2015, Pt 1, Ch 4 applies to a contract for a trader to supply a service to a consumer—see
NEWS
Commercial analysis: The High Court has delivered a pivotal ruling recently in Jaevee Homes Ltd v Fincham (t/a Fincham Demolition) which confirms that enforceable contracts can be formed through informal social media platforms such as WhatsApp. Jeremy Ladyman, treasury & financial services partner, and Melody Li, solicitor, both at Irwin Mitchell, consider the implication of the court’s decision.
PRACTICE NOTES
The rules regarding execution of documents governed by the laws of Scotland are contained in: • the Requirements of Writing (Scotland) Act 1995 (RW(S)A 1995), and • the Legal Writings (Counterparts and Delivery) (Scotland) Act 2015 (LW(CD)(S)A 2015) This Practice Note considers both the traditional method of execution and execution by counterpart under Scots law. Contracts or obligations that must be in writing In Scotland, the general rule is that writing is not required to create a contract or a unilateral obligation or a trust. Writing is required for the following exceptions to that general rule: • contracts or unilateral obligations to create, transfer, vary or end a real right in land (excluding tenancies or rights of occupation for less than a year and private residential tenancies) • creating, transferring, varying or ending a real right in land • an agreement between adjoining owners in relation to the accretion or erosion of their common boundary • a gratuitous unilateral obligation (other than one
PRACTICE NOTES
This Practice Note sets out the model clauses recommended by the Stockholm Chamber of Commerce (SCC) Arbitration Institute for arbitration either as a first choice of dispute resolution method or as a method of final resolution failing mediation. The Practice Note also sets out the model clause for expedited arbitration in the event of lower value or less complex arbitration disputes and SCC Express. These model clauses should be used by parties wishing to provide for SCC arbitration should a dispute arise between them. For more information on arbitrating under the SCC Arbitration Rules, see: SCC arbitration—overview. Basic SCC model clause ‘Any dispute, controversy or claim arising out of or in connection with this contract, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration rules of the SCC Arbitration Institute.’ Recommended additions: The seat of arbitration shall be…. The language to be used in the arbitral proceedings shall be…. This contract shall be governed by the substantive law of…. Model clause—Expedited Rules ‘Any dispute,
CHECKLISTS
This Checklist provides an overview of the questions to be asked when determining: • which system of law is applicable to a contract of employment or employment relationship (applicable law) • whose courts and/or tribunals should decide an employment case (jurisdiction), and • how the courts and employment tribunals decide what statutory rights, if any, are held by an employee who works abroad and/or has a foreign employer (territorial application or scope of statutory employment rights) Brexit impact From exit day (31 January 2020) the UK ceased to be an EU Member State but, in accordance with the transitional arrangements provided in the Withdrawal Agreement, the UK was in an implementation period (IP) until 11pm on 31 December 2020, known as ‘IP completion day’. During this period, the UK continued to be treated by the EU as a Member State for many purposes. While it could not participate in the political institutions and governance structures of the EU, the UK had to
PRACTICE NOTES
This Practice Note considers the circumstances in which the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) applies to energy projects in the UK, and some of the issues that may arise in practice. It should be read alongside Practice Note: What is a construction contract under the HGCRA 1996?. The HGCRA 1996 applies to all construction contracts (as defined therein) in England, Wales and Scotland. When drafting a contract, it is important to consider whether the works being carried out on site fall within the ambit of the HGCRA 1996 and therefore whether the contract should be compliant with it. This is a debate that frequently arises on energy projects where some or all of the works carried out may fall within the exclusions of the HGCRA 1996. Does the HGCRA 1996 apply to energy projects? In order for the HGCRA 1996 to apply to a contract, the contract must fall within the definition of 'construction contract' (HGCRA 1996, s 104), being a contract for the carrying out of (or
Q&As
Prize promotions or competitions that involve the payment of a monthly subscription may be at risk of constituting a distance contract (particularly where they are an ‘organised distance sales or service-provision scheme’) under the provisions of the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR 2013), SI 2013/3134, such that cancellation rights (and other rights) under the CCR 2013, SI 2013/3134, apply. Conversely, competitions that are not offered for entry in exchange for the payment of a price or, potentially, where they are ‘one off’ are less likely to be caught. We have not, however, been able to identify any authority (including regulatory guidance) that has considered the applicability of the CCR 2013, SI 2013/3134, to prize promotions and so there is a significant amount of uncertainty as to how courts or regulators
CHECKLISTS
When drafting, reviewing or negotiating an escrow agreement (also known as an escrow deed) in the context of a construction project, the following should be taken into account: • What is the purpose of an escrow agreement? An escrow agreement sets out the desire of the parties to set up and operate an escrow account where money will be placed as security for payments which are to be made under an underlying contract and released when defined conditions are satisfied. • Who should be party to an escrow agreement? The escrow agreement is entered into between: ◦ the party who is obliged to make payments to another party under another contract eg the employer under the building contract or the contractor under a sub-contract (the Payer) ◦ the party who is entitled to receive payments from another party under another contract eg the contractor under the building contract or the sub-contractor under a sub-contract (the Payee) ◦ an escrow agent who will act independently and operate the escrow account in accordance with the terms of the escrow agreement
PRACTICE NOTES
Paid holiday benefits both employers and workers by allowing workers a period of relaxation and recuperation. The entitlement to paid annual leave can be statutory (ie as a result of legislation) or contractual (ie as a result of terms in the contract of employment). This Practice Note looks at: • contractual paid holiday entitlement • the interaction between contractual and statutory paid holiday entitlement • differences that can arise between contractual and statutory paid holiday entitlement • the ways in which a relevant agreement can impact upon the operation of statutory paid holiday entitlement, including issues that those drafting or reviewing contracts might wish to address, and • claims arising from an employer’s breach of the contractual paid holiday entitlement For information on statutory paid holiday, see Practice Notes: • Statutory paid holiday—the right • Statutory paid holiday—carry-over • Statutory paid holiday—calculating holiday pay • Statutory paid holiday—payment on termination, and • Statutory paid holiday—enforcement and claims Separate provisions apply in respect of statutory paid holiday entitlement for irregular hours and part-year workers (as defined in the Employment Rights
NEWS
This week's edition of Construction weekly highlights includes a case in which the Court of Appeal considered a late application to rely on expert evidence (Yesss v Warren), a case in which the Technology and Construction Court (TCC) considered preliminary issues for a declaratory relief claim in a dispute relating to the formation of a construction contract (CLS Civil Engineering v WJG Evans), the enactment of regulations in relation to registered building control approvers which derive from amendments to the Building Act 1984 (BA 1984) by the Building Safety Act 2022 (BSA 2022), and publication of the National Infrastructure and Construction Pipeline 2023 by the Infrastructure and Projects Authority (IPA).
PRACTICE NOTES
This Practice Note considers the role of the ‘Project Manager’ under the NEC3 and NEC4 contracts. It looks specifically at the provisions of the NEC3/NEC4 Engineering and Construction Contract (ECC), but similar provisions are found across the suite. The Project Manager has a central role in the administration and management of an NEC contract. Although it is not actually a party to the contract, it is involved in almost every aspect of it. The Project Manager is vital to the success of a project. Who is the Project Manager? The Project Manager is usually appointed in the early stages of a project, often in the feasibility stages. It is appointed by the Client (called the ‘Employer’ in NEC3), for example under a Professional Services Contract (see Practice Note: NEC Professional Service Contract). The Project Manager is also named by the Client in part one of the Contract Data (although, as noted above, the Project Manager is not party to the contract). The Project Manager can either be a member of the Client’s own staff or