Construction Contractor meaning

For further information on the principal designer’s responsibilities and remit, consult the following: Construction (Design and Management) Regulations 2015, SI 2015/51 (CDM Regs 2015) HSE Guidance on the Construction (Design and Management) Regulations 2015 CONIAC Industry guidance for Principal Designers Practice Note: CDM Regulations 2015—the role of the principal designer Appointment of the principal designer On any project involving more than one contractor, the client is required to appoint the principal designer formally and in writing. This appointment should be made as soon as practicable and, in any case, before the construction phase begins, without delay...

For further information about the responsibilities of the contractor and the principal contractor, consult: Construction (Design and Management) Regulations 2015, SI 2015/51 (CDM Regs 2015) HSE Guidance on the Construction (Design and Management) Regulations 2015 CONIAC Industry guidance for Contractors CONIAC Industry guidance for Principal Contractors Practice Note: CDM Regulations 2015—the role of the contractor and principal contractor Duties of all contractors A contractor must: confirm, prior to taking on the appointment, that it possesses the necessary skills, knowledge and experience and, where it is an organisation, the organisational capability, to discharge its role in a way that safeguards the health and safety of anyone impacted by the project before starting work, ensure the client is aware of their duties under the CDM Regs 2015 (see Practice Note: CDM Regulations 2015—the role of the client) ...

This checklist sets out the key issues to consider when reviewing a PCG on behalf of a contractor who is being asked to provide a PCG. The terms 'contractor' and 'employer' are used, but the same principles also extend to arrangements between a contractor and a sub-contractor, or between an employer/contractor and a consultant. As PCGs are commonly bespoke, the particular context should be taken into account when assessing a PCG. For a fuller discussion of these points, see Practice Note: Parent company guarantees (PCGs) in construction—drafting and negotiation issues. Is the contractor obliged under the Building Contract to provide a PCG? If not, there is no requirement for the contractor to deliver one. Nevertheless, a contractor might still agree to give a PCG to reassure the employer and to create or sustain a good working relationship. Do the contractor’s internal policies allow the issue of PCGs, and is any approval necessary? Many businesses would opt to give a PCG rather than a performance bond,...

Prepared with Anthony Shatz of Fladgate LLP, this flowchart outlines the steps to be taken and the key matters to consider for a transfer of shares in a joint venture company (JVC), where a right of first refusal (ROFR), together with drag along and tag along provisions, appear in the articles of association/shareholders’ agreement...

This Flowchart Helps determine whether the stamp duty land tax (SDLT) higher rates surcharge applies to a transaction. The higher rates surcharge covers acquisitions of certain additional residential properties by individuals, and any residential purchases by purchasers who are not individuals as well. Read this Flowchart in full alongside Practice Note: Higher rates of SDLT on additional residential properties. To identify which rate applies to a transaction, refer to What rate of SDLT applies to my transaction?—Flowchart and Practice Note: Rates of SDLT. This Flowchart proceeds on the basis that: the buyer is acquiring one property, and that the acquisition is not linked with any other transaction...

This diagram depicts a standard, payer-driven payment procedure within a building contract between an employer and contractor...

Bayerische Landesbank and another v Ruschemalliance LLC [2024] EWHC 1822 (Comm) What are the practical implications of this case? In keeping with comparable determinations, this judgment succinctly sets out the jurisdictional thresholds and principal considerations the court applies when evaluating applications for anti‑suit injunctions. It underscores the judiciary’s practical bent and operates as a constructive illustration of inter‑court co‑ordination, projecting a clear signal where numerous contests flow from identical underlying events, even though such matters are dealt with at varying moments and tiers of the court structure. In sum, the outcome reasserts the English courts’ steadfast commitment to upholding arbitration, including in circumstances where the arbitral seat is situated in a foreign state. What was the background? In 2021, the defendant, Ruschemalliance LLC (“RCA”), a Russian entity, entered into two Engineering, Procurement and Construction agreements for the development of liquefied natural gas and gas processing plant facilities in Russia. The obligations owed by RCA’s counterparties, the German companies Linde GmbH and Renaissance Heavy Industries LLC (together,...

In this issue: Contract law Building safety Litigation Arbitration Tax for construction lawyers Standard form contracts Construction industry news Daily and weekly news alerts New and updated content Construction trackers Contract law Employer deemed out of time in issuing a notification on the Monday after a Sunday deadline (My Contracts v 74 Hamilton Terrace) In My Contracts Ltd v 74 Hamilton Terrace Freehold Ltd [2024] EWHC 2896 (TCC), the TCC issued a declaration at the contractor’s request concerning the construction of a clause that imposed a deadline for the employer to notify costs for which the contractor was responsible. The court concluded the employer missed the deadline by serving the notice on the Monday immediately after the final day for service, which had fallen on a Sunday. Central to the decision was that the clause made no provision for the period to be calculated by reference to ‘Business Days’. See News Analysis: Employer...

In this issue: Standard form contracts Building safety Expert witnesses Construction industry news Daily and weekly news alerts New and updated content Construction trackers Standard form contracts CLLS publishes 2024 edition of Letter of Intent The CLLS has released the refreshed 2024 edition of its Letter of Intent. Our commentary reviews the revisions made. See News Analysis: City of London Law Society publishes 2024 edition of Letter of Intent. Court refuses declaratory relief in JCT termination payment dispute (Shaylor v Valesecure) In Shaylor Group Ltd (in administration) v Valesecure Property Ltd (in liquidation) [2024] EWHC 750 (TCC), the Technology and Construction Court declined to issue declarations regarding the contractor’s right to payment after the termination of a JCT-based contract. In doing so, the court explored noteworthy issues of contractual interpretation, including the methodology for assessing sums owed to the contractor post-termination and the impact of an ineffective assignment by the employer. See News Analysis:...

This Practice Note is archived and no longer updated or maintained. It outlines the differences introduced in the NEC4 standard form construction contracts when set against the NEC3 versions. It also summarises the changes from NEC3 across the standard forms. The spotlight is on the NEC4 Engineering and Construction Contract (ECC), though many ECC revisions mirror those rolled out across the broader NEC suite. Many of the points made in relation to the ECC are indicative of suite-wide adjustments. The NEC characterises NEC4 as an ‘evolution not revolution’, building on NEC3. The bulk of NEC4’s revisions appear aimed at embedding sound practice and/or cutting reliance on Z clauses (ie bespoke amendments). For further details on NEC contracts in general, including their structure, see Practice Note: NEC contracts—introduction. Publication of NEC4 The NEC4 contracts were issued by the Institution of Civil Engineers on 22 June 2017...

Practice Note This Practice Note consolidates our content on the amendments as introduced in the 2024 editions of the Joint Contracts Tribunal (JCT) standard form construction contracts...

This practice note addresses the 2nd Edition of the Burgundy Book, released in 2013, with particular emphasis on its role as a target cost form. In line with all IChemE agreements, the Burgundy Book contains thorough requirements for testing at completion and for commissioning, making it especially well suited to process engineering sectors such as nuclear, water, petrochemicals, and food. The suite adopts an almost entirely uniform structure across clauses, presentation and schedules. Departure from the standard drafting occurs only where needed to set out the mechanism delivering the risk/reward regime—in this instance, remuneration on a target cost footing. See also Practice Notes: IChemE Conditions 5th Edition—‘Red Book’ and IChemE Conditions ‘Green Book’ 4th Edition. Nature of Target Cost Contracts Target cost denotes that the contractor receives payment of the ‘actual cost’ it incurs (as defined), akin to a reimbursable arrangement but constrained by an agreed target cost. Where the actual cost surpasses the target, any additional sum payable to the contractor is reduced—often to nil. If the...

Agreement concerning [ insert brief details of the works/project ] at [ insert address of works ] (incorporating, among other things, the JCT Standard Building Sub-Contract Agreement 2024 (SBCSub/A 2024) and the JCT Standard Building Sub-Contract Conditions 2024 (SBCSub/C 2024), each as amended and supplemented as set out in this Agreement and in the Schedules to it). This Agreement is dated the [ insert number ] day of [ insert month ] 20[ insert year ] Parties [ insert name of the Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Contractor ] (“the Contractor”) [ insert name of the Sub-Contractor ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Sub-Contractor ] (“the Sub-Contractor”) Now it is agreed that: 1 Interpretation In this Agreement, words and expressions carry the meanings respectively attributed to them in the JCT SBCSub/A 2024 and...

The Contract comprises the completed Standard Building Contract Without Quantities for use in Scotland 2016 published by the SBCC subject to the following amendments: Recitals and Articles updated: contractor to provide a master programme and Schedule of Information Requirements; CDP responsibility accepted; Principal Contractor duties priced; arbitration deleted; Schedule of Amendments prevails; Third Party Agreements duties. Contract Particulars: arbitration entries removed; Rectification Period set at 12 months; fluctuations and certain PII/guarantee entries deleted. Conditions: key definitions revised (Practical Completion, Copyright Material, Design sub‑contractors, Funder, Site); Scottish jurisdiction; approvals mean principles only; entire agreement; variations in writing. Design/materials/programming: contractor accepts ER/CP; quality and non‑deleterious materials; programme reporting; site risk; drawings/info supply; tighter discrepancy notices. Time/defects: mitigate and advise on delay; narrower Relevant Events; Practical Completion clarified; stronger rectification, consequential damage and indemnity; phased as‑built/occupation information. IP/confidentiality/BIM: broader licence, moral rights waivers and delivery; confidentiality reinforced; BIM where adopted. Management/sub‑contracting: access, approved Site Manager, meetings; prescribed sub‑contracts; collateral warranties/third‑party rights; CDM duties; insurance...

The Contract comprises the completed Standard Building Contract With Approximate Quantities 2016 published by the JCT subject to the following amendments: This Contract adopts JCT SBC/AQ 2016 with extensive modifications to reflect design responsibility, building safety and commercial controls. Recitals: Contractor to provide a master programme and Schedule of Information Requirements; confirms site due diligence and accepts full CDP design liability. Articles: Dutyholder Regulations added; Tender Price covers Principal Contractor duties; arbitration removed; Schedule of Amendments prevails; strict protection of Third Party Agreements. Definitions/governance: new and revised terms (Building Safety Regulator, HRB, Practical Completion, Copyright Material, Design Sub‑contractors, Dutyholder Regulations); several deletions; English court jurisdiction. Design/materials/information: skill‑and‑care design and coordination; only new, compliant, non‑deleterious materials; golden thread storage; monthly programme reporting; site risks at Contractor’s risk. Procedures/controls: tighter instruction, testing, defects and as‑built duties; enhanced confidentiality and IP licences; HRB assistance; CDM/Dutyholder competency confirmations. Sub‑contracting/rights: prescribed sub‑contracts, insurances and delivery of collateral warranties/third‑party rights; limits on assignment. Payment/commercial: 28‑day final...

Clause 2.27.1 of the JCT Standard Building Contract 2011 (SBC) Clause 2.27.1 provides that where it becomes reasonably clear that progress of the Works, or any Section, is delayed or likely to be delayed, the Contractor must at once notify the Architect/Contract Administrator, explaining the material circumstances, including the reasons for the delay, and in that notice point out any occurrence he regards as a Relevant Event... Lexis+® UK practical point: the same wording appears in the Standard Building Contract 2016 (cl 2.27.1) and in the JCT Design and Build Contract 2011/2016 (cl 2.24.1), save that in the design and build forms the addressee ‘Architect/Contract Administrator’ is replaced by the ‘Employer’... Two principal questions arise when deciding whether a notification clause such as SBC clause 2.27.1 has been properly observed: what does the obligation to give notice ‘forthwith’ encompass, and is the contractor obliged to meet this condition? what level of notification/particulars of the ‘material circumstances’ must be provided? ...

Retention Retention describes the portion of interim payments the employer withholds as security for the contractor’s future performance of its duties and to encourage the contractor to discharge those duties in full and properly. For further details, consult the Practice Note: Retention of payment in construction contracts. When retention is to be released to the contractor depends on the particular contract terms for the project. Typically, half of the retained sum is paid out at practical completion, with the balance thereafter following completion of any remedial works for defects reported within the defects liability period. Consequently, if these milestones are reached before the final certificate is issued, the contractor may have a right to seek payment of some or all of the retention...