i-law

Law of Construction Disputes, The

Page 675

Index
  • abatement
  • ACA forms of contract 35
  • accord and satisfaction 215
  • ACE forms of contract 35, 82, 112
  • act of God 146, 150–152, 157–158, 347
  • adjudication 183, 386–387
    • appointment of adjudicator 397
    • development of non-statutory 24–33
      • England 27
      • France 32–33
      • Germany 31
      • international cases 27–30
    • Dispute Adjudication Boards see under Dispute Boards
    • HGCRA 1996 130, 183, 394, 440
    • JCT
      • changes made in SBC05 173–175
    • notice of 396
    • power and duties of adjudicator 397
    • Scheme for Construction Contracts 388–392, 489–498
    • serial decisions
    • Sharia – Islamic law 9–18
    • stare decisis 2–4
  • agency
    • subcontractors 147
  • amicable settlement
    • after notice of dissatisfaction 445
  • anticipatory repudiation 209
  • applicable law 1
  • arbitration 374
    • agreement 375–376, 415–418
    • amiable compositeur or ex aequo et bono 378
    • Arbitration Act 1996 375
    • arbitrator 374–378
    • award 394, 428–429
    • confidentiality 422, 424
    • disclosure 423–424
    • Dispute Board Decisions 15, 444
      • enforcement of decisions in interim period before arbitral award 445
    • document only 378
    • enforcement 14–18
    • of foreign awards in UK 428–431
    • high-low 372, 378
    • litigation vs mediation vs 373
    • mediation 386
    • Sharia – Islamic law 10, 13–15, 17–18
    • stare decisis 2–4
    • third parties: 1999 Act 309–310
  • battle of the forms 51–53
  • bilateral contracts 58
  • capacity 44
  • causation 255–260, 359–360

  • Page 676

    certification 219–223
    • errors 221
    • fairness 231
    • FIDIC Red Book
      • interim payment certificates 222
    • final account statements 250
    • ICE
      • Measurement Version 179
    • impartiality of certifier 223, 230, 232–233
    • interim certificates 223
    • liability of certifier
    • natural justice 222, 231, 233
    • repudiatory breach 201
    • requirements, certificate 221
    • variations 233–250
      • basis for payment and value of 244–245
      • errors 249
      • failure to order 241
      • final certificates 250
      • implied 238–239
      • ordering 240
      • removing work 242–243
      • standard methods of measurement 248
      • value 246–247
  • civil law 6–9, 13–14, 275
    • countries 9
    • differences between common and 8–9
    • jurisprudence constante 6
    • Napoleonic Code 6, 7–8
  • claims 254–302
  • collateral warranties 171–172, 226, 305–313
    • defences 311–312
    • enforcing variation and rescission 311
    • formation of subcontract
      • raised but not pursued 107
    • net contribution clauses 305, 307
    • promisee’s enforcement of contract 312
    • provisions 307–313
    • subcontractor
      • defect issues 139
    • third parties
  • common law 1–6
    • countries 5
    • differences between civil and 8–9
    • history 2
    • obiter dictum 5
    • ratio decidendi 23
    • repudiation vs determination 206
    • stare decisis 2–5
  • conciliation 345
    • France 32–33
    • Germany 31–32
    • Sharia – Islamic law 10
  • condition precedent
    • interim certificates 222
    • time at large 354
    • time-bar clause 359, 366–369
  • conditions
    • contract terms 59
  • confidentiality
    • arbitration 406
  • consideration 44–47
  • construction contract
    • agreement to agree 58–59
    • battle of the forms 51–54
    • capacity 44
    • conditions 59
    • consideration 44–47
    • defining 41–42
    • estimate for work 56
    • express terms 59, 80, 81, 82, 112, 120–121, 197, 224, 310–312
    • fairness and fair dealing 56
    • formation 41–50
    • forms of standard 34–38
      • methods of contracting 36–38
      • standard form provisions 36
      • use of form contracts 35
    • implied agreements 44
    • implied terms 50, 59, 100–102, 119–121, 432
      • access to or possession of site 121–132
      • business efficacy test 60
      • ground conditions 123–125

      • Page 677

        officious bystander test 60
      • terms implied in fact 59
    • innominate terms 59
    • intent to be legally bound 47–48
    • invitation to treat 42–43
    • letters of intent 50
    • methods of contracting 36–38
      • construction manager method 38
      • design-build method 37
      • management contracting method 37
      • traditional method 37
    • misrepresentation 60–65
      • distinctions 63
      • express false representations 63–64
      • implied misrepresentations 65
      • innocent misrepresentations 65
      • misstatements of the law vs fact 65
      • negligent misrepresentations 65
    • mistake 66–71
      • common 70–71
      • frustration vs impossibility vs 72–73
      • mutual 69
      • unilateral 66–68
    • offer and acceptance 42–44
    • oral 49–50, 111
    • privity of contract 48, 145, 305
    • Scheme for Construction Contracts 388–392, 489–498
    • severability clauses 58
    • Subject to Contract 43
    • tenders 54–57
    • uncertainty 58
    • unilateral 44
      • bilateral contract vs 58
    • warranties 59
  • construction operations
    • HGCRA 1996 130
  • construction tenders 54–57
  • Contracts (Rights of Third Parties) Act 1999 309–310
    • liability in tort 146
    • relations with the architect and engineer 147
    • text 499–504
  • contribution
  • cost reimbursement or cost plus fee contract 40
  • costs
    • cost reimbursement or cost plus fee contract 40
    • Dispute Boards 411
    • refusal to mediate 384–386
  • damages 196–197
  • deceit 62
  • Defective Premises Act 1972
  • defences 148–159
    • collateral warranties 311–312
    • force majeure 148–159
    • frustration 159–162
      • mistake vs impossibility vs 72–75
    • impracticability or impossibility of performance 153
    • misrepresentation see separate entry
    • mistake see separate entry

    • Page 678

       Rylands v Fletcher 347–348
  • delay
    • by certifier in issuing interim certificates 229–230
    • by subcontractors 137–138
    • claims by employer 196
    • concurrent 290–293, 369
    • disruption vs 283–284
    • repudiatory breach: substantial 204 see also Extension of time (EOT) clauses
  • design professionals 76–112
    • architect/engineer’s duty: tort vs contract 78
    • concurrent negligence and contract duty 84–88
      • assumptions, design 94–96
      • continuing duty 91–94
      • expert evidence 89
      • negligence generally 89–97
      • new or cutting edge 90
      • pro-active duty to review design 96
      • remoteness test 89
      • temporary works 96–97
    • delegation of design responsibilities 114
    • duty to others 102
    • duty to warn of retrospective danger 98–101
    • fitness for purpose liability 79–80
    • knowledge of others 109
    • latent defects, subsequent occupiers and personal injury 104–105
    • matters other than design 110
    • NEC3 184–186
    • new, novel and strict design standards 111
    • others, liability for design of 112–114
    • physical damage/personal injury 102–103
    • purely economic losses 103–104
      • employer and sub-consultant 112
      • tests for imposition of duty of care 103–104
    • reasonable skill and care 81–83
    • retrospective danger, duty to warn of 98–101
    • subsequent occupiers, latent defects and personal injury 104–105
  • design-build form contracts 165–179
    • contractor to scrutinise employer’s requirements for errors 168
    • extension of time (EOT) clauses 168
    • sweeping-up 169
    • JCT forms of contract see separate entry
  • development banks
  • diminution in value
  • disclosure
  • Dispute Boards 400–404
    • Adjudication Boards 400–408
      • agreement 414–424
      • enforcement of decisions in interim period before arbitral award 445
      • interim-binding decisions 404
      • notice of dissatisfaction 444
      • Sharia –Islamic law 15, 17
    • advent in England of 27
    • advisory opinions 411
    • appointment 408
    • arbitration 18, 444
    • available at short notice 410
    • costs 411
    • enforcement of DAB decisions in interim period before arbitral award 445
    • new developments 445–447
    • non-binding recommendations 403
    • Persero No 1 454, 456
    • Persero No 2 4454, 456–458
    • recent developments 450–453
      • growth of 406
      • history of 404
      • informal operations 410
      • international aspects 413
      • interpretation of contract 408
      • membership 408
      • overview 407
      • procedures 411
      • reasons for success 412
      • routine operations 409
    • Review Boards 401–403, 406, 471
      • non-binding recommendations 401, 403–405
      • Sharia –Islamic law 15
    • routine operations 409
      • Sharia – Islamic law 18
    • site visits, regular 408–410
    • unique 402
  • dispute resolution 371–413

    • Page 679

      adjudication see separate entry
    • agreements 414–424
    • amicable settlement 445
    • arbitration see separate entry
    • conciliation see separate entry
    • conventional model 371–372
    • design-build form contracts 179
    • Disputes Boards see separate entry
    • e-disclosure 425–431
    • engineer as quasi-arbitrator 22–23
    • engineer/arbitrator as judge 20–21
    • historical development of 18
    • JCT
      • changes made in SBC05 173–175
    • legal development of 19
    • mandatory provisions 387–392
    • mediation see separate entry
    • NEC3 186
    • NEC4 186
    • notice of dissatisfaction 444
    • process 393–399
    • serial adjudication decisions 432–443
    • Sharia – Islamic law 15, 18
    • World Bank 405–413
  • disruption
  • due diligence 284–285
  • e-disclosure
    • arbitration 425–426
    • confidentiality 427
    • enforcement of foreign awards in the UK 428–431
  • economic duress 47, 214
  • economic loss 103
  • election
    • serial adjudication decisions 432–441
  • encroachment 350
  • engineer as quasi-arbitrator 22–23
  • engineer/arbitrator as judge 20–21
  • estoppel 46
  • Executive Tribunal 373
  • expert determination 26–27, 372–373
  • extension of time (EOT) clauses 168
    • claims 275–282
    • concurrent delay 290–293
      • standard forms 168–169
      • who determines extension 287–288
    • ICE conditions of contract 180
    • sweeping-up 169
  • fairness and/or fair dealing 56, 60
    • certification 231
  • FIDIC Forms of Contract 187 start here
  • Final Account Statements 250–253
  • fixed price contract 38
  • float 288–290
  • force majeure 148–159, 194
    • Acts of God and 151
    • burden of proof 151
    • commencement 157
    • duration of condition 157
    • effect of 159
    • FIDIC Forms of Contract 148–151, 155, 194
    • frustration and 152–153
    • mitigation of losses 151
    • necessary requirements for 156
    • notice of event 158
    • purpose of clauses 152–153
    • termination of contract 150
    • typical usage 154–155
  • formation of contract 41–50
    • capacity 44
    • consideration 44–47
    • defining contract 41–42
    • implied agreements 44

    • Page 681

      intent to be legally bound 47–48
    • invitation to treat 42–43
    • letters of intent 50
    • offer and acceptance 42–43
    • oral contracts 49–50
    • privity of contract 48–49
    • unilateral contract 44, 58
  • France 32–33
    • force majeure 148, 151–152
    • non-statutory adjudication 32–33
  • frustration 159–163
    • mistake vs impossibility vs 72–75
  • Germany
    • non-statutory adjudication 31
  • glossary of construction terms 465–480
  • good faith 22, 31, 34, 42, 60, 198, 235, 383, 452
  • government forms of contract 35
  • guaranteed maximum price contract 39
  • Hanafi Islamic Sharia 10
  • Hanbali Islamic Sharia 11, 13
  • high-low arbitration 372, 378
  • Housing Grants, Construction and Regeneration Act 1996
  • human rights 5, 8, 343
  • ICE conditions of contract 179–181
    • conciliation 373
    • design and construct contract 180
    • Disputes Boards 406–409
    • ground conditions 126–127
    • Measurement Version 7th Edition 179
    • minor works contract 180
    • reasonable care and skill 165–166
    • time and cost issues 180–181
  • implied agreements 44
  • impracticability or impossibility of performance 153
  • injunctions
  • innominate terms 59
  • insolvency
    • employer insolvency and payments to subcontractors 135–136
    • unfair preference 136
  • intent to be legally bound 47–48
  • interest
    • arbitrator 377
    • Sharia – Islamic law 15
  • International Chamber of Commerce (ICC) 401–402, 407, 411, 446
    • Combined Dispute Board 401
    • Dispute Board Rules
  • invitation to treat 42–43
  • Islamic law see Sharia – Islamic law
  • issue estoppel 429–431
  • JCT forms of contract 169–172
    • changes between 2016 and 2011 editions 176–177
    • changes made in SBC05 173–175
    • commencement, progress and 177
    • completion 168–169
    • condition precedent 368
    • design 164–166
    • dispute resolution 179
    • extension of time 165
    • fit for purpose 165–166
    • force majeure 148
    • insurance 176
    • JCT 98 SFBC 173
    • list of 164–165
    • nominated subcontractors 173
    • reasonable skill and care 165–166
    • termination 165
    • warranties/third-party rights 178
  • joint ventures 402
  • judicial appraisal 372
  • jurisprudence constante 6
  • Latent Damage Act 1986
  • latent defects, subsequent occupiers and personal injury 104–105
  • letters of intent 50–51
  • licence to enter site
  • limitations Act 1980
  • liquidated damages 275–282
    • commercial justification 281
    • delay claims and 263–264
    • exclusive remedy 280
    • float 288–290
    • force majeure 149–150
    • genuine pre-estimate of loss 282
    • ICE conditions of contract 189
    • new test 282
    • penalty 276–279, 281–282
    • provision for nil 279
  • litigation
    • arbitration vs mediation vs 373
    • JCT
      • changes made in SBC05 173–175
  • loan agreements
    • Disputes Boards 409
  • Maliki Islamic Sharia 11–13
  • mediation 345
    • adjudication 386
    • after notice of dissatisfaction 445
    • agreements 383
    • arbitration 378
    • enforceability of ADR agreements and mediation settlement agreements 383
    • litigation vs arbitration vs 373
    • refusing 379–386
      • no cost consequences 384–385
    • Sharia – Islamic law 13
    • withdrawing from 384
  • methods of construction contracting 36–38
    • construction manager 38
    • design-build 37
    • management contracting 37
    • other 38
    • traditional 37
  • misrepresentation 60–65
    • distinctions 63
    • express false representations 63–64
    • fraud in the factum 61
    • fraud in the inducement 61
    • implied 65
    • innocent 65
    • misstatements of law vs fact 65
    • negligent 65
    • non-disclosure 65
    • site conditions 128
    • true but stops being true 63
    • by words or conduct 61
  • mistake 66–71
    • common 70–71
    • frustration vs impossibility vs 72–75
    • mutual 69
    • unilateral 66–68

  • Page 682

    natural justice 118
    • certifier 222, 231, 233
    • enforcement of foreign awards 431
    • HGCRA 1996 adjudication 394, 440
  • NEC
  • negligence 314–328
    • causation 255–260
    • certifier 224–226
    • design professionals 89–97
      • concurrent negligence and contract duty 84–88
    • duty
      • tort vs contract 78
    • duty of care tests
    • economic loss 78–79, 84–85, 88, 96, 103–104, 106, 107–108, 298, 321–332
    • encroachment 35
    • limiting factors 345–348
    • misrepresentations 65
    • nuisance 341–344
    • personal injury/physical damage, latent defects and subsequent occupiers 104–105
    • retrospective danger, duty to warn of 98–101
    • subcontractors
      • defect issues 139–140
      • duty of care towards employer 145
    • trespass vs 349
    • vicarious liability 335–340
  • negligent misrepresentation 65
  • negligent misstatement 65
  • nemo sua judex in sua causa 21
  • net contribution clauses 305, 307
  • Neutral Fact-Finder 373
  • non-contract liability see Tort
  • notice of dissatisfaction
    • Dispute Adjudication Board 444
  • nuisance 341–344
    • foreseeable damage 345–348
    • limiting factors 345
    • private 341–342, 344
    • public 342
    • statutory 343
    • strict liability in nuisance
      • rule in Rylands v Fletcher 346–348
    • trespass vs 349
    • unreasonableness 341, 345
  • obiter dictum 5
  • offer and acceptance 42–43, 52
  • oral contracts 49
  • pacta sunt servanda 21, 41, 300
  • payment formats
    • cost reimbursement or cost plus fee contract 40
    • guaranteed maximum price contract 39
    • remeasurement type of contract 39
    • target cost contract 40
    • traditional lump sum or fixed price contract 38
  • payment(s)
    • for defective work 185
    • design-build form contracts 176
    • FIDIC Forms of Contract 188, 189
    • ICE
      • Measurement Version 181
    • notices 399
      • withholding 400
    • prohibited conditional 399
    • to subcontractors and employer insolvency 135–136
    • suspension of performance for nonpayment 191
    • termination of contract for non- 201
    • variations 244–245 see also Certification

  • Page 683

    personal data 425
  • personal injury, latent defects and subsequent occupiers 104–105
  • precedent 2–6
    • binding 2, 9
    • persuasive 2, 5
  • prevention principle 197, 292–293, 351, 353, 357, 364, 366–368
  • privity of contract 48–49, 106, 305, 470
    • subcontractors 145
  • professional indemnity insurance
    • reasonable skill and care 80
  • promissory estoppel 215–218
  • quantum meruit 44, 55–56, 73, 122, 142, 160, 162, 234, 242, 245
  • quasi-contract 44
  • ratio decidendi 23, 26, 318
  • rectification
    • mistake 70
  • release
    • discharge of contract 212–213
  • remeasurement type of contract 39
  • repudiation
    • anticipatory 209
    • contractual termination vs common law 199
    • defective work 200–201
    • delay, substantial 202, 204
    • determination vs 206
    • employer fails to give possession of site 201
    • employer’s failure to pay on time 200, 202
    • need not be accepted 210–211
    • suspension as 207–208
    • unjustified walking off job 201
    • wrongful suspension 207–208
  • rescission 212
  • RIBA Architect’s Appointment 82, 112
  • Rylands v Fletcher 346–349
  • Sale of Goods Act 1979
  • Scheme for Construction Contracts (England and Wales) Regulations 1998
  • set-off
    • abatement vs 302–304
    • serial adjudication decisions 442–443
  • severability clauses 58
  • Shafi Islamic Sharia 11–13
  • Sharia – Islamic law 9–1
    • doctrinal schools of 10–13
    • enforcement of ADR decisions 14
      • adjudication decisions vs arbitration 14–18
      • awards 14–18
      • Dispute Boards 15, 18
    • history 9–14
    • Ijtihad 10
    • Iran 17
    • Saudi Arabia 15–16
    • sources 10
  • site
    • access after completion 121
    • access denied
      • anticipatory repudiation 211
    • access, right to 115
    • conditions 122
    • contract provisions for unexpected ground 126–127
      • misrepresentation of site 128
      • unforeseen ground 123–125
    • Housing Grants Act 129–130
    • importance of regular visits 408
    • licence to enter 117–120
    • possession by whom 116
      • employer responsibility regarding 131–132
      • (non-)exclusive 121
    • repudiatory breach
      • employer failure to give 195
    • wrongfully excluded by unrelated third parties 120
  • specific performance 45, 74, 119, 274–275, 417–419
  • standard construction contracts
    • methods of construction contracting 36–38
      • construction manager 38
      • design-build 37
      • management contracting 37
      • other 38
      • traditional 37
    • operation and payments formats 38–40
    • standard form provisions 36
    • use of form contracts 35
  • standard form contracts 34–35, 168–169
  • stare decisis 2–7
  • strict liability 81
    • fitness for purpose 79–80
    • in nuisance 346–348
    • vicarious liability 335–340
  • subcontractor
    • default by
    • employer insolvency and payments 135–136
    • NEC3
      • definition of 183
    • nominated 141–144
    • problems with 141–144
    • relations with architects and engineers 147
    • relations with contractor 134
    • relations with employer
      • no privity 145
    • third parties
    • tort liability 146
    • types of subcontract 133–136
  • Subject to Contract 43
  • Supply of Goods and Services Act 1982
  • target cost contract 40
  • tenders 54–58
  • termination of contract 207–208
    • accord and satisfaction 215
    • anticipatory repudiation 209
    • common law repudiation vs contractual 206
    • delay, substantial 195
    • determination vs 199–218
    • employer’s failure to pay on time 192, 194
    • FIDIC Forms of Contract 193
    • force majeure 194
    • release 212–214
    • rescission 212
    • repudiation need not be accepted 210–211
    • repudiatory breach 200–201, 203–204, 207–208, 351
      • defective work 201–202
      • employer fails to give possession of site 201
    • unjustified walking off job 201
    • waiver and promissory estoppel 215–218
    • wrongful suspension 207–208
  • time at large 351–359
  • time-barred claims 93, 360–370
  • time of the essence 352
  • tort
    • contract vs 269–273
    • deceit 62, 6
    • design professionals
      • concurrent negligence and contract duty 84–88
      • duty
        • contract vs tort 78
    • economic losses 78–79, 86, 102–103, 305
    • negligence 297, 305, 311, 315, 317, 319–327
      • causation 255, 258–260
      • contract vs tort damages 315–321
      • contributory 260
      • design professionals see above
      • duty of care tests 332
    • retrospective danger, duty to warn of 98–101
    • subcontractors 139, 145–146
      • negligent misstatement see separate entry
      • no privity 145
      • nuisance see separate entry
      • Rylands v Fletcher 346–349
    • subsequent occupiers or owners 305
    • third parties 145
    • trespass 342
    • vicarious liability 336–341
  • Torts (Interference with Goods) Act 1977
  • traditional lump sum or fixed price contract 38
  • trespass 349
    • contractor’s licence to enter site 117
    • encroachment 350
  • unconscionability 252, 274, 276, 278, 282, 360
  • Unfair Contract Terms Act 1977
  • unilateral contracts 58
  • unjust enrichment 49
  • value

  • Page 685

    variations 191, 233
    • arbitration 378
    • basis for payment and value of 244–245
    • enforcing 311
    • errors 249
    • failure to order 241
    • FIDIC Forms of Contract 190–191, 234
    • final certificates 250
    • implied 238
    • ordering 240
    • removing work 242–243
    • separate contract or 234–237
    • standard methods of measurement 248
    • value 246–247
  • vicarious liability 335–340
  • waiver 215–218
  • warranties
    • collateral see separate entry
  • World Bank
    • appointment and membership 408
    • Dispute Boards 406–407, 411–412
    • early appointment 408
    • harmonised contract conditions 406
    • informal operations 410
    • international aspects 413
    • regular site visits 408
    • routine operations 409

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