Construction Contract Tender Rights in the UK

COURSE CONTENT

DAY ONE –

CONTRACTORS AND SUBCONTRACTORS – KNOW YOUR CONTRACTUAL RIGHTS

A.M.

08.30 Registration and Coffee
09.15 Lecture One
10.00 Lecture Two
11.00 Coffee
11.15 Lecture Three
12.00 Questions and Discussion
12.30 Lunch

P.M.

1.30 Lecture Four
2.15 Lecture Five
3.00 Tea
3.15 Lecture Six
4.00 Questions and Discussion
4.45 Close

CONTRACTORS AND SUBCONTRACTORS – KNOW YOUR CONTRACTUAL RIGHTS
(from Tender Enquiry to Final Account)

Due to the constant stream of new and revised legislation, case law and standard form amendments, difficulties are experienced by those employed in the construction industry in keeping up to date.

This course is aimed at extracting matters of benefit to contractors and subcontractors arising from these changes and in distilling and explaining them in an easily understood manner.

Pre-Contract

· EU obligations concerning publication of tender enquiry
· Pre-qualification rights
· Rights of recovery of financial loss due to inaccurate tender enquiry documents
· Right to withdraw tender before end of ‘open for acceptance’ period
· Entitlement to have tender at least considered
· Rights concerning correction of errors in tenders
· Obligations under EU Regulations to accept lowest offer
· Entitlement to payment for work carried out following receipt of a letter of intent if the project is abandoned

Contract

· Rights to avoid exclusion or limitation clauses in suppliers conditions of trading
· Securing an adequate period for executing the work
· Keeping liquidated damages to a sensible financial level
· Ensuring proper time allowance is made for off site production and manufacture
· Avoiding on demand bonds
· Securing a contract without collateral warranties
· Rights and obligations with regards to onerous terms in contracts

Payment

· Enhancing cashflow using legitimate mans
· Securing up front payments
· Rights to be paid by instalments
· Payments for early design, manufacture and materials stored off site
· Rights concerning prompt release of retention
· Ensuring on time milestone payments when work is the subject of delay
· Rights to interest for late payment
· Entitlement to stop work if payment is not made on time
· Right to know how the payment has been calculated
· Rights to prompt payment of final balances due following completion of work
· Securing payment when the value of work exceeds the Employer’s budget
· Rights to payment where damaged work is covered by insurance

Changes

· Ensuring contractor’s or subcontractor’s design development does not become unpaid for
Employer changes
· Securing acceptance by Architect, Engineer or Contract Administrator of pre-quoted sums
for variations
· Making sure payment is made for extra work which is the subject of a verbal instruction
· Ensuring that the monthly valuation for payment is fairly calculated
· Ensuring that daywork sheets are promptly signed and money due paid
· Rights to substitute a specified material with one of equal quality

Programme

· Right to programme the works without interference from Architect, Engineer or Contract
Administrator
· Right to commence work prior to approval of the programme
· Right to amend the programme without approval
· Right to the use of float in the programme

Extensions of Time

· Rights to securing extensions of time
· Right to have the extension of time award made within a timescale
· Lack of written notices does not impede entitlements

Avoiding Liquidated Damages
· Rights to have unreasonable sums struck out
· Rights to receive payment in full even where Contractor or Subcontractor delays have
occurred

Defects

· Differentiating between defects due to bad workmanship and those resulting from incorrect
Employer’s design
· Obligations concerning when defects have to be corrected
· Credits for defects not required to be corrected at rates which only reflect the effect on the
use of the facility and not the estimated rectification cost

Completion

· The right to have a completion certificate issued when the work is fit for occupation
· Ensuring prompt release of retention
· What to do if the Employer requires a delay to handover
· Rights to handover part of the works before completion of the whole

Construction
· Securing extra payment for unforeseen ground conditions
· Additional payment for dealing with existing service mains

General Rights

· Obligations of Employer where Architect, Engineer or Contract Administrator fails to
perform their contractual duties
· Rights to refuse access to the site of persons employed by the Employer
· Rights of access to Employer’s records

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