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PRACTICE NOTES
Introduction Project Partnering Contracts were conceived and drafted by Professor David Mosey PhD of King’s College, London whose research interests focus on the interdisciplinary relationships of construction law with the evolving practices of procurement and project management. This includes research into partnering, alliancing, joint ventures, and other models for collaborative working. The contracts are sponsored by King’s College and the Association of Consultant Architects. PPC2000 has been amended in 2003, 2008 and in 2013, the current version. There are thought to be no reported cases on PPC2000, an indication of its effectiveness or possibly its limited use. Pricing under PPC2000 Pricing under the PPC2000 Partnering Contract follows a two-stage process which is intended to lead to transparency and cost certainty and encourage the identification of cost savings, added value and value engineering. The pricing process is divided between two phases: the pre-construction phase and the construction phase. Pricing during the pre-construction phase At the start of the pre-construction phase, the Client appoints design consultants and cost consultants: the design consultants will produce preliminary designs
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 enforcement and claims in respect of the statutory entitlement workers in the UK have to 5.6 weeks of paid annual leave. It is important to recognise at the outset that this comprises two elements: • a basic entitlement to four weeks’ paid annual leave (sometimes referred to as ‘Euro leave’), and • an additional entitlement to 1.6 weeks’ paid annual leave Separate provisions will apply to irregular hours and part-year workers (as defined in WTR 1998, SI 1998/1833, reg 15F) for holiday years beginning on or after 1 April 2024. For more information, see Practice Note:Statutory paid holiday—irregular hours workers and part-year workers. For the position in Northern Ireland, which has its own Working Time Regulations (Northern Ireland) 2016, SI 2016/49, see Practice Note: Employment law
PRACTICE NOTES
This Practice Note is a ‘how to’ guide on preparing a parent company guarantee for a commercial, business-to-business (B2B) transaction which signposts relevant content. It includes links to potentially relevant issues, including what is a guarantee, preliminary considerations, drafting the parent company guarantee (including the parties, duration, scope, indemnities, dealing with variations to the underlying agreement, no subrogation), and other legal and practical considerations. A parent company guarantee (PCG) is a guarantee given by one contracting party's ultimate or intermediate holding company in favour of the other contracting party to secure the performance of that party's obligations under the contract. PCGs are often sought from a customer in respect of the performance obligations of a supplier, but may equally be sought by a supplier in respect of the payment obligations of a customer. This ‘How to Guide’ is a very high-level introduction to preparing a parent company guarantee for commercial transactions and may be suitable for trainee solicitors or junior lawyers. See also Parent company guarantees in commercial transactions—checklist. For examples of PCGs, see Precedents: • Parent company guarantee—commercial contracts in which
Q&As
Novation is not strictly a transfer of rights and obligations but a discharge of the rights and obligations between contracting parties and a recreation of them with a third party (replacing an original contracting party) and one (or more) of the contracting parties to the original contract. The requirements of novation are: • consideration, and • consent A novation can be distinguished from an assignment which transfers the benefits of a party to another party without extinguishing the original contract which remains in force (with
PRACTICE NOTES
This Practice Note provides a summary of the remedies and redress available to consumers for breaches of various consumer protection legislation, including remedies for faulty goods, services and digital content under the Consumer Rights Act 2015 (CRA 2015), cancellation rights for distance and doorstep contracts, the private right of redress, and redress mechanisms for card payments. Additionally, it introduces other forms of private action, such as for breach of contract or statutory duty, and collective proceedings that may be utilised for the benefit of consumers. For more information on civil or criminal enforcement, see: Consumer remedies and enforcement—overview. For an introduction to the consumer regulatory bodies able to enforce some of the remedies mentioned within this Practice Note, see Practice Note: Consumer protection regulators—introduction. Remedies for faulty goods The CRA 2015 provides consumers with certain statutory rights for goods purchased from traders. The key rights include that the goods must be of satisfactory quality, fit for a particular purpose made known to the trader by the consumer, as described, and match the sample or model seen or examined
PRECEDENTS
Dear [Insert client’s name] [Insert heading, eg matter description] Thank you for your instructions to act on your behalf in connection with [describe matter]. This Engagement Letter and the attached Terms of Business explain the basis on which we will be acting for you—together they form the contract between us. Please contact me if you have any difficulty understanding this Engagement Letter or other information we may provide, eg if anything in this letter is unclear or you require information to be provided in larger text, another format or a different language. 1 Contact details and supervision The person dealing with your matter is [insert name of person handling matter], who is a [insert status]. Their contact details are: Telephone number Email address Postal address [Insert telephone number] [Insert email address] [Insert postal address] The best way to contact [insert name of handler] is [insert best contact method and times]. If [insert handler] is not available, the following members of staff may be able to deal with any queries you have: [insert names and contact details of other members of staff who can help with queries] The person with
PRACTICE NOTES
Agreements for sale of commercial property The Standard Commercial Property Conditions (First Edition) were published in May 1999. At that stage, it had become clear that the Standard Conditions of Sale required considerable amendment to meet the realities of a commercial property transaction, particularly with regard to insurance, passing of risk and late completion. The Second Edition (2nd edition—Encyclopaedia of Forms and Precedents vol 38(1)) came into force on 1 June 2004 and these conditions were incorporated into many contracts for the sale and purchase of commercial property. The current edition is the Third Edition—2018 Revision (Third Edition). However, it is extremely rare for the SCPCs to be incorporated unamended. Most contracts exclude a number of conditions and substantially amend others. Part 1 and Part 2 conditions Part 1 comprises SCPCs 1–12 and covers the main terms of the contract, such as incumbrances affecting the property, title, insurance and completion. The Part 2 conditions only apply if expressly incorporated into the contract and cover VAT, Transfers as a Going
PRACTICE NOTES
Purchase agreements for new aircraft are entered into between an aircraft manufacturer (as the seller) and a customer (as the purchaser). In the majority of circumstances, the customer will be an airline or an operating lessor but the customer can also be another entity such as a government body. The terms of aircraft purchase agreements are often kept confidential between the aircraft manufacturer and the customer and are seldom revealed. The majority of such terms will not be disclosed to a financier of the customer, which is providing the customer with funding with respect to an aircraft to be purchased in accordance with the terms of that purchase agreement. An aircraft manufacturer generally has a standard form purchase agreement that it will enter into with all of its customers. However, certain commercial terms will be negotiated between the parties and letter agreements are often entered into between the aircraft manufacturer and the customer to supplement the terms of the aircraft purchase agreement (see: Key provisions of a purchase agreement below). Examples of aircraft manufacturers
PRACTICE NOTES
What kind of disputes are suited to mediation? Construction projects give rise to a wide range of disputes: • disputes over money, eg non-payment of sums believed to be due or disputes over the value of additional work carried out • disputes involving entitlement to time, where the contractor considers it is entitled to additional time for carrying out the works but this is not agreed by the employer or contract administrator • defects in the building work. For more information on disputes in relation to defects, see Practice Note: Defects claims in construction • in most building contracts, a contract administrator is engaged to administer the contract which requires, for example, certifying whether the works are in delay, when the works are deemed practically complete and when the defects which appear during the defect liability period have been remedied. Frequently, disputes arise regarding whether the certification by the contract administrator is correct. These disputes have to be resolved between the contractor and the employer—the contract administrator is not liable to the contractor in respect of its administration of the
PRACTICE NOTES
This Practice Note considers the dispute resolution procedure under the NEC3 and NEC4 contracts, including discussions between Senior Representatives, adjudication, Dispute Avoidance Board (DAB) recommendations and final resolution by litigation or arbitration. It focuses specifically on the provisions of the Engineering and Construction Contract (ECC). The dispute resolution provisions are found in Options W1, W2 and (in the NEC4 ECC) W3, one of which must be selected by the parties when they enter into the contract. The parties are also required to provide important information in the Contract Data, for example, whether disputes are to be finally resolved by litigation (ie court proceedings) or arbitration. If the contract is subject to the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), then Option W2 must be selected, as it is the only one which allows disputes to be referred to adjudication at any time. For guidance on when the HGCRA 1996 applies, see Practice Note: What is a construction contract under the HGCRA 1996? In the NEC4 ECC, the dispute resolution Options provide as follows:
PRACTICE NOTES
It is vital for contractors to follow the correct procedure for making claims for additional costs and/or extensions of time under the FIDIC contracts. The consequences for not doing so are severe, and will lead to a contractor being unable to claim successfully and potentially being liable for liquidated damages if completion is delayed. This Practice Note looks at the procedure for notifying contractors' claims under the 1999 Red, Yellow and Silver Books, and the Pink (MDB) Book 2010 and Gold Book 2008. For information about the procedure for employers' claims in these contracts, see Practice Note: FIDIC contracts (pre-2017 editions)—Employer claims. The claims procedure in the 2017 editions of the Red, Yellow and Silver Books is different—for example, Contractor and Employer claims are subject to the same regime. For more information, see Practice Note: FIDIC contracts 2017—Contractor and Employer claims. Contractors' claims The procedure for making contractors' claims is set out in clause 20.1. Provisions entitling the contractor to make a claim as a result of various events are scattered throughout the contract. Different
PRACTICE NOTES
The problem: a local authority cannot contract with itself It is not infrequently the case that a local authority brings forward development of its own land. Policy L1 of the National Planning Policy Framework (NPPF) requires Mayors and local planning authorities (LPAs) to take a proactive role in identifying and helping to bring forward land suitable for meeting development needs, including land held in public ownership. In determining development proposals, policy L2 requires substantial weight to be given to the benefits of making better use of vacant and underutilised land and buildings. In these cases, the LPA will be determining the local authority’s own planning application. It will often be the case that planning obligations under section 106 of the Town and Country Planning Act 1990 (TCPA 1990) will be needed to secure required scheme mitigation before planning permission can be granted. Despite the fact that the LPA as planning decision-maker and the local authority as landowner perform separate functions, they are part of the same entity, and