Legal and Contractual Solutions
Procurement
Practitioner solutions on procurement: entire contracts, partnering, subject to contract, tendering and the collateral tender contract.
What is an entire contract, and how does the inclusive price principle affect payment?FreeAn entire obligation may require complete performance before the agreed payment becomes due. Price risk is a separate question governed by the scope, pricing terms and adjustment machinery.
Does a partnering project require a formal contract to be agreed?PremiumPartnering is sometimes said to make a formal contract unnecessary. Whether that is safe depends on how the law treats a collaborative relationship when a dispute finally arises.
What is the effect of agreeing to undertake work that is expressed as being subject to contract?PremiumThe words subject to contract are meant to hold back legal commitment, but in construction they do not always do so. Whether a binding contract has formed can decide who is paid and on...
How does two-stage tendering operate, and what risks arise before the construction contract is executed?PremiumTwo-stage tendering brings a contractor into a large or complex project during the design period. Understanding what each stage does, and where the risk sits before a contract is signed...
Where an employer ignores a stated tendering procedure, can an unsuccessful bidder claim damages?PremiumAn employer that promises a tendering procedure and then ignores it can be liable to a bidder who would otherwise have won, even though no construction contract was awarded. The route is a...
What liability arises where a bid names key personnel who are then replaced?PremiumBids name the people who will run the project, and named people sometimes leave. Whether replacing them creates liability turns on what the bidder knew when it named them, and on whether...
Can a freely agreed contract be unenforced on the ground that its effect would be commercial nonsense?FreeA party bound by an unwelcome literal reading often argues that the result is commercial nonsense. Whether a court will correct the words, or hold the party to them, is governed by a...
Can an architect or engineer be negligent for advising an inappropriate procurement method?FreeProcurement advice given at the outset can decide whether a project meets its budget. Whether a professional is liable for the wrong method turns on the duty to advise and, more often, on...
Where a tenderer is prevented from adjusting its tender before the deadline, is it entitled to compensation?PremiumA tenderer that finds an error before the deadline often wants to amend rather than withdraw. Whether it can, and whether a refusal gives it a claim, turns on the tender documents and, in...
How do management contracting and construction management differ in contractual structure and risk allocation?PremiumManagement contracting and construction management both bring a manager onto a large project for a fee while others build. The difference in who holds the work contracts drives control...
Can unsuccessful tenderers claim compensation where a public authority uses an undisclosed evaluation method?PremiumA contracting authority must assess tenders under the published award criteria and assessment methodology. The available remedy depends on when proceedings begin, whether the contract has...