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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 Early neutral evaluation Early neutral evaluation is a form of alternative dispute resolution whereby the parties invite a neutral third party to give an opinion on the merits of the case or particular aspects of the case. The evaluator will generally be a lawyer or an expert in the field. See Practice Note: Early Neutral Evaluation (ENE). Early warning The early warning process is a prominent feature of the NEC3/NEC4 suite of contracts, but the concept exists in some other standard form contracts too. Under the NEC4 ECC, the Contractor and Project Manager are required to give an early warning when they become aware of specified matters that could adversely affect price, time or performance, enabling the matter to be considered and managed proactively. For more information on the process in the context of NEC, see Practice Note: NEC—risk management (The early warning procedure). Egan report A report entitled ‘Rethinking
PRACTICE NOTES
This Practice Note considers the law of prescription in Scotland as it currently stands. Significant changes were made to the law of prescription by virtue of the Prescription (Scotland) Act 2018 (P(S)A 2018). P(S)A 2018, ss 5 and 13 came into force on 1 June 2022. The remaining provisions came into force on 28 February 2025 (Prescription (Scotland) Act 2018 (Commencement, Saving and Transitional Provisions) Regulations 2022, SSI 2022/78). For guidance on: • the special rules that apply in relation to the prescriptive period for obligations to make reparation/pay damages, see Practice Note: Short negative prescription in Scotland—the prescriptive period for obligations to pay damages • the law of limitation in Scotland, see Practice Note: Limitation of actions in Scotland, which also deals with the differences between limitation and prescription in Scots law • the closest equivalent in England and Wales, see: Limitation—overview which, as well as giving an overview of this topic, links through to more detailed guidance on various aspects of the law of limitation in England and Wales Key: • CL(EGP)(S)A
PRACTICE NOTES
Introduction to the FCA's COBS requirements on distance communications, client agreements and cancellable contracts Introduction to distance communication requirements This Practice Note considers the regulatory framework and guidance in place governing the requirements relating to distance communications contained in chapter 5 of the Financial Conduct Authority's (FCA) Conduct of Business sourcebook (COBS 5). COBS 5 implemented provisions of the Distance Marketing of Consumer Financial Services Directive (Directive 2002/65/EC) (DMD) (as amended by the Unfair Commercial Practices Directive (Directive 2005/29/EC).. The DMD applied to consumer financial services, which it defines as any service of a banking, credit, insurance, personal pension, investment or payment nature. The DMD aimed to ensure that consumers who deal with a financial services firm using distance sales channels are not at a disadvantage to those using more traditional sales channels by ensuring that they are given minimum standard information about the firm they propose to deal with and the product or service being offered. Consumers also have to be given an opportunity to withdraw from the concluded contract
NEWS
Construction analysis: The Sheriff Appeal Court allowed an appeal by a sub-contractor, finding that the sub-contract payment provisions did not allow the contractor to deduct illiquid sums from interim payments.
NEWS
Law360, London: Ratifying the New York Convention isn't enough to strip away a state's right to plead sovereign immunity in a later dispute over a contract that might be subject to the convention's rules, a London court has ruled.
PRACTICE NOTES
The JCT contracts contain detailed provisions for termination, setting out the grounds on which the parties may terminate and the consequences thereof. Under the JCT contracts, it is the Contractor’s employment that is terminated, rather than the contract itself. This distinction is designed to ensure that the post-termination provisions contained in the contract survive termination. This Practice Note refers to the termination clauses in the JCT Standard Building Contract (SBC) With Quantities 2011, 2016 and 2024 editions, which are set out in section 8 of those contracts. Comparable provisions are found within the other JCT contracts. It should be read alongside Practice Note: Termination of a construction contract. Termination should always be considered very carefully. If the termination is wrongful, or the correct procedures are not followed to the letter, the purported termination may amount to a repudiatory breach of contract by the party seeking to terminate. In any event, if the other party disputes the purported termination, the terminating party could find itself involved in a costly dispute. In this regard, it is important to be aware that,
PRACTICE NOTES
ARCHIVED: This archived Practice Note is not maintained and is for background information only. STOP PRESS: on 1 August 2023, the Cabinet Office published three new standard contract document collections, containing updated templates and guidance for the government’s Model Services Contract, Mid-Tier Contract and Short Form Contract. Further guidance on the adoption of the standard contracts is provided in a supplementary Procurement Policy Note (PPN). PPN 08/23: Using Standard Contracts applies to central government departments, executive agencies and non-departmental public bodies, which have been urged to adopt the standard contracts ‘as soon as practicable’. Other public sector bodies are also encouraged to apply the approach set out in PPN 08/23, which advises the adoption of the standard contracts for all relevant procurements, instead of using bespoke contracts, unless there is an existing government framework or industry standard contract in place (eg for construction projects). The adoption of the standard contracts, where appropriate, aligns with guidance provided in the Sourcing Playbook. We are reviewing this content accordingly. In the meantime, for more information,
PRACTICE NOTES
This Practice Note explains the different situations where an adjudicator may resign, whether it be of their own volition or mandatory, and looks at the procedure for resignation. For guidance on the parties’ liability to pay the adjudicator’s fees following resignation, see Practice Note: An adjudicator's fees and expenses. In relation to the ability of a referring party to bring an adjudication to an end, see Practice Note: Abandoning the adjudication. Voluntary resignation Whether or not an adjudicator may resign voluntarily is determined by the rules governing the adjudication, although in practice if an adjudicator does not wish to act there may be little the parties can do (or would want to do) to compel the adjudicator to continue acting. Common reasons for resignation include illness or unforeseen personal circumstances, but most rules which permit voluntary resignation do not expressly require the adjudicator to give reasons. The Scheme for Construction Contracts permits the adjudicator to resign ‘at any time’ by giving notice in writing to the parties (Part I, para 9(1)). The scope of the adjudicator’s
PRECEDENTS
[On the headed notepaper of the creditor’s solicitors] Our ref: [insert] FAO [Insert name] [Name of debtor’s solicitors] [Address line 1] [Address line 2] [Postcode] [Date] Dear [insert name] [Insert creditor’s name] AND [insert debtor’s name] Letter of claim We write further to the letters dated [insert date(s)] in respect of the above matter concerning [insert brief details]. Despite the requests made in that correspondence, our client has yet to receive the outstanding payment[s] detailed below. In the circumstances, this is our client’s letter of claim sent in accordance with the Pre-Action Protocol for Debt Claims (the Protocol). We set out below details of our client’s claim and enclose copies of the key documentation. We also enclose a copy of the Protocol for your reference, alongside the required Information Sheet, Reply Form and Standard Financial Statement.[ We would advise you to take legal advice in respect of the contents of this letter.] Should we fail to receive a response within [30 days] of this letter of claim, we are instructed to issue proceedings. For the avoidance of any date, that
NEWS
Commercial analysis: The case before HHJ Kramer involved the hiring of a crane and a subsequent dispute about the terms on which it was hired. The defendant argued that a limitation of liability clause under the standard terms of the Construction Plant-Hire Association (‘CPA’) had been incorporated into the contract. HHJ Kramer rejected this submission, finding that the defendant had not done enough to clarify that the term was part of the contract. In case he was wrong about incorporation, HHJ Kramer went on to consider whether the term would nonetheless have been reasonable having regard to the test under section 11(1) of the Unfair Contract Terms Act 1977 (UCTA 1977). He found that it would, bearing in mind the parties’ commercial positions and respective bargaining power. HHJ Kramer finally addressed the issue of quantum, determining various heads of loss after a careful review of the evidence. Written by Edward Grigg, barrister at 4 New Square Chambers.
NEWS
The International Federation of Consulting Engineers (FIDIC) has published Practice Note III Decisions: Preparation and Composition to provide best practice guidance to adjudicators in carrying out their decision-writing function under FIDIC forms of contract. Launched on 3 December 2025 during the Official FIDIC International Contract Users' Conference in London, the practice note establishes standards of good practice expected of dispute board members and details best practice tasks and techniques for producing dispute board decisions. The guidance covers managing the referral process, review of referrals, establishing timetables, response reviews, jurisdictional challenges, managing additional exchanges, assessment of evidence, hearings, deliberation among dispute board members, structuring decision documents, compliance with FIDIC contract provisions and formalities, and post-decision considerations. While written primarily for dispute adjudication and avoidance boards, the general principles may apply to all types of dispute board decisions under other FIDIC forms and the document is expected to be widely used across the international construction industry.
NEWS
The Office of Communications (Ofcom) has reported that British Telecommunications (BT) has completed all remedial actions required following a £2.8m penalty imposed just over a year ago for failing to provide contract documents to EE and Plusnet customers. As part of the enforcement action, BT has been directed to amend its non-compliant sales processes to ensure that new customers receive all required documents and to take reasonable steps to refund customers who had been charged early termination fees despite not receiving their contract documentation. In response, BT has successfully refunded or credited £18m to affected customer accounts. In instances where the company was unable to trace or refund affected customers, BT donated approximately £440,000 across 17 different charities. With the completion of these remedial actions, Ofcom has now concluded its investigation into BT’s breaches regarding contract documentation.