2 South West Building & Construction SOUTH WEST


Jan-Feb 2011


BUILDING & CONSTRUCTION


Tavistock Newspapers Ltd, 14 Brook Street, Tavistock, Devon, PL19 0HE. Tel: 01822 613666 Fax: 01822 618222


INSIDE THIS ISSUE


■ Mercury Construction - Page 4 ■ Focus on Plymouth area - Page 10 ■ Wood Yew Waste - Page 13 ■ Environment Topics - Page 14 ■ New Generation Energy - Page 19 ■ Renewable Heat Incentive - Page 20 ■ Federation of Master Builders - Page 24 ■ Winkleigh-Crediton area - Page 26 ■ Tamar Trading Company - Page 28 ■ Calendar for 2011 - Pages 30-31


CAPTION FOR FRONT PAGE PICTURES: News and information from the businesses on the front cover is featured in this issue of South West Building & Construction magazine.


Quote of the month


‘


I was never hip when I was hip - Writer and entertainment Ben Elton


STEPHEN HOMER


Retention of title clauses


Stephen Homer, a former chairman of the CIC South West (Devon & Cornwall), offers some timely advice.


How you can contact us


EDITORIAL Editor: Paul White


Main contributor: Andrew Townsend Paul White Communications


PO Box 40, Callington, PL18 9WB ADVERTISING:


Judith Jewell Tel/Fax 01837 658941 E-mail judithjewell@btinternet.com


MAILING LIST


If you have a change for our mailing list Tel 01822 615007 Fax 01822 618971


E-mail swbmail@internet-today.co.uk ’


ON a construction project deciding which party owns which goods and materials at any given time can be a difficult task. In the present economic climate with insolvency as an ever-present threat, ownership of goods and materials has become more of an issue. Retention of title clauses (‘ROT clauses’) may afford an element of protection to those parties who supply goods and materials. Where goods have been supplied under a contract of sale, the Sale of Goods Act states that title to the goods passes from the seller to the buyer when the parties intend it to pass. In general this will be, if there are no indications to the contrary, at the point of delivery. Many construction contracts,


however, are for the supply and fitting of goods, rather than contracts of sale, and these contracts are usually subject to the Supply of Goods and Services Act. Unless there are express provisions to the contrary, ownership of the goods will remain with the supplier until the goods are incorporated into the works when title will pass to the owner of the property in which they are incorporated. It is common for a contractor, sub-contractor or supplier to include an ROT clause in its terms and conditions. ROT clauses are based on the principle that a buyer cannot transfer the title to goods and materials which it does not have.


ROT clauses amend the statutory position described above by leaving ownership with the seller until full payment has been made for the goods. Be aware though that in order


for an ROT clause to be effective it needs to be carefully drafted and the goods and materials subject to the clause need to be easily identifiable or separate from other goods. ROT clauses which are only detailed on an invoice and not in the contract are likely to be ineffective against a buyer, as by the time of the invoice it is usually too late to add new contract terms. Furthermore, ROT clauses generally only bind the contracting parties and although useful for protecting a supplier’s position, even the best drafted ROT clauses may be of no effect if the buyer has annexed the goods to the land, used the goods in a manufacturing process, or sold the goods on to a third party, who purchased in good faith.


Therefore ROT clauses should be seen as another layer of protection for a supplier but should not be relied on as complete protection against a buyer who becomes insolvent or refuses to pay for the goods supplied. If anyone has any queries arising from this article, I can be contacted via email at s.homer@ashfords.co.uk.


SOUTH West Building & Construction magazine is now available to read on the worldwide web. The magazine, which is part of Tavistock Newspapers Ltd, can be found on the internet at www.tavistock-today.co.uk. Under menu on the home page, click the Special Publications button. This opens a new page. Then click on the cover of an edition of South West Building & Construction magazineto view that issue in full.


DISCLAIMER: The CIC SW (Devon & Cornwall) will not accept any responsibility for any loss occasional to any person acting or refraining from action as a result of the material included in this publication.


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