[ Feature: Dispute Resolution ]
for any clauses that currently appear to apportion adjudication costs in an unfair way.
5. Practise good contract administration.
n All variations should be in writing. Confirm oral instructions in writing.
n All daywork sheets should be signed by an authorised person.
n Monitor progress against the agreed programme. As soon as there is any deviation caused by others, confirm in writing.
n Submit interim payment applications in detail with supporting documentation and on time.
n Prepare cost/value reconciliations every month. n Submit formal notices when necessary and in accordance with the terms of your agreement.
6. Keep good records.
n Maintain a daily diary of events and of your operatives on site.
n Issue minutes of meetings. n Take regular dated photographs of your work. This is important where work will be covered up and you have an entitlement.
studied and advice sought from a chartered quantity surveyor if you are uncertain of any of the terms and conditions.
n The issues raised in ‘Understanding the scope of the job’, see previous page, should be covered in the contract agreement.
n Have you priced for the cost of maintaining professional indemnity insurance (PII)? You need this if you have design responsibility and, if it is required by a collateral warranty, you may need to run for at least 12 years from practical completion.
3. Sign the contract before you start work.
n A simple objective, but often not achieved. n Be aware that signing a contract commits you to a six-year liability for the quality of your work. If you have to sign a contract under seal or as a deed, this extends your liability to 12 years. This can be more complicated than it appears when dealing with latent defects.
n If a contract is signed but attached with conditions that differ from those in the original document, this constitutes a counter offer and will not form a binding contract.
Adjudication is far and
away the most popular means of resolving disputes
50
ECA Today Summer 2010
4. Make sure you know who pays the adjudicator.
n Tolent Plc came to fame when the court held that their conditions – stating that a party taking a dispute to adjudication was liable for both sides’ costs irrespective of who won – were binding. While this approach is about to be outlawed under the amendments to the Construction Act*, look out
* Housing, Grants, Construction & Regeneration Act 1996 + The Cancellation of Contract in a Consumer’s Home or Place of Work Etc.,Regulations 2008
7. Maintain good credit control.
n Negotiate, if possible, payment terms in accordance with the Office of Government Commerce (OGC) ‘Guide to best “Fair Payment” practices’.
n Remind your client when payment is overdue. n Do not be frightened to implement your rights under the contract, including suspending your work because of non payment and as allowed by the Construction Act*.
8. Avoid letters of intent.
n Avoid using letters of intent where possible. If unavoidable, make sure there is a value-of-work limit and do not exceed this limit.
9. Adhere to door stepping regulations+ .
n These regulations protect the consumer, usually a domestic householder, by providing a seven-day cooling off period. This gives a consumer the right to change their mind and not pay for any work done within the seven-day period.
n If the work is an emergency, a waiver (see CC&L section of the manual) can be signed to allow works to commence immediately.
More information
The ECA Commercial Contracts and Legal Department is able to advise ECA registered members on commercial matters, including contracts and warranties they are being asked to sign, and how to ensure payment for work they have done. For these and other related matters, call the department on 020 7313 4818 and we’ll take the matter from there.
SHUTTERSTOCK
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68