| Quarterly Email Bulletin – September 2005
Welcome to the Alway Associates news bulletin. This quarterly newsletter is intended to keep you up to date with matters relating to contracts and commercial issues within the construction industry.
Current News
- The New JCT 2005 and NEC3 forms are released
The publication of the new JCT 2005 and NEC3 standard forms of contracts has finally happened. While it will take time for these to be used and the effects of the changes to be felt by contract administrators there is already a lot of interest in the changes.
Of particular note is that the Government have endorsed the NEC3 standard forms of contract. As the NEC3 will be the preferred form for public sector projects it will be important for those working in this area to get up to speed on them. For more information contact Michael Rowlinson (Tel. 01295 275975).
- Construction Challenge for the London Olympics 2012
The London Olympics to be held in 2012 provide a major opportunity and challenge for the UK construction industry. The development will consume in the region of £2.4 billion of public funding to be spent on the venues, infrastructure and transport facilities. But who will co-ordinate this programme of work and when will we see the results – and for those involved in the industry what are the opportunities?
For details on the bodies with management responsibility and the key dates for the development of the infrastructure and venue follow the link to the article on our BrunswickIS Division’s website www.brunswickis.co.uk/articles.asp
With tight timescales and an existing skills shortage the potential pitfalls are there for all to see. It will therefore be critical that you have the right contracts in place and well thought out projects plans. It will also be important that you have a team with the feasibility, planning and project management skills to ensure the smooth running of your contract. Our BrunswickIS division specialises in these areas for further information contact Kevin McKee (Tel.: 01295 226330).
Frequently Asked Questions
On the 1st March 2005 we started our free of charge helpline. As all of our existing clients will know to their benefit, we have always been willing to offer over the phone initial advice on any specific matter at no cost. Not surprisingly we have noticed that some subjects are asked about more often than others. To this end we have decided to include this section on our newsletter which will address some of the issues that have been raised.
- Can a client deduct liquidated damages if they have not incurred a loss?
Yes, provided the amount stipulated for liquidated damages was a genuine pre-estimate of the client’s loss. The genuine purpose must not be to penalise the contractor but rather be to compensate the employer. The actual damage need not be proved and it does not matter that the actual loss is greater or less that the stipulated sum.
- What is the difference between abatement and set-off?
Abatement is the process of reducing a price or value, for example when a valuation is reduced to take account for work not properly carried out, completed, or not undertaken at all. Set-off is a defence to a claim used to reduce or extinguish a claim. Of note is by virtue of s.111 of the Housing Grants, Construction and Regeneration Act 1996 a party’s right to set-off is excluded where that party has not issued the requisite withholding notice at the proper time.
- What is a condition subsequent?
A condition subsequent is a term which brings to an end the rights of the parties upon the happening of an event, for example a contract clause providing for termination in the case of bankruptcy.
- The NEC refers to an Activity Schedule, what is it?
An Activity Schedule is a term referred to in the NEC EEC Form of Contract main options A ‘Priced contract with activity schedule’ and C ‘Target contract with activity schedule’. The Activity Schedule is identified in the contract data and may be altered to take account of compensation events. The Activity Schedule will generally mirror the activities on the accepted programme but with values ascribed to each event rather than bars.
If you have a problem or question relating to a construction contract, be it legal or commercial, and want to speak to an expert in the field then call our free helpline on:
0845 838 2759
The helpline is open Monday to Friday from 9.30am to 4.30pm and gives you the opportunity to speak over the phone to our experts who will give clear and practical advice based on their extensive experience.
Recent Articles
For more in depth information on topics related to the industry we regularly post new articles on our website. Article recently posted have included:
To read these and other articles click here.
Forthcoming Events / Seminars
Alway Associates hold regular events around the country. The following are the next event coming up and links to book your place:
Free of charge breakfast seminars:
- Dispute Resolution Forums. Cardiff – 2nd September. For more information, or to book your place, email our Cardiff office.
- Payment – Frequently Asked Questions London – 6th September. For more information, or to book your place, email our London office.
- NEC3 – Why does the Government prefer this contract?. Solihull – 4th October, Sheffield – 13th October and West Bromwich 20th October. For more information, or to book your place, email our Banbury office.
Public training seminars:
In October Alway Associates will be holding a number of ½ and 1 day public training courses on the new JCT 05 and NEC3 standard forms of contracts.
- JCT 05 Design & Build Contract (1 day) - London 4.10.05 or Birmingham 10.10.05
- JCT 05 Overview (1 day) - Sheffield 06.10.055 or Banbury 17.10.05
- NEC3 Engineering and Construction Contract (1day) - Banbury 11.10.05 or Sheffield 18.10.05
- JCT Overview (½ day a.m.) and NEC – Changes from the 2nd to 3rd Editions of the ECC (½ p.m.) -London 19.10.05 or Birmingham 05.10.05
Details on locations and pricing are available from our Banbury office.
If you haven’t seen a copy of our new seminar flyer and would like the details on what we can offer please email us at enquiries@alway-associates.co.uk and we will send you our latest information.
Company News
- Alway Associates would like to welcome John Richards who joins our Cardiff office as a Senior Consultant.
- We would also like to take the opportunity to congratulate Robert Shawyer (Director at our Cardiff office) for passing his LPC exams and Eugene Lenehan (Banbury office) for passing the first year of his LLB course.
Alway Associates:
Construction Law, Contracts & Commercial Consultants www.alway-associates.co.uk
BrunswickIS
Project & Commercial Management Services www.brunswickis.co.uk
We have no wish to disturb you unnecessarily. If you do not wish to receive email updates please reply to unsubscribe@alway-associates.co.uk
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