Construction Period meaning

Basic terms At the outset, assess whether overage suits the transaction. Your client might be better protected by agreeing a higher purchase price or by entering into a conditional contract instead. Overage provisions can be intricate and expensive to negotiate. If overage is to be applied, consider when the seller expects or hopes to receive a further payment and how the buyer could avoid activating the overage. Ensure the overage includes clear definitions of: the overage period (note that, from 6 April 2010, the rule against perpetuities does not apply to most commercial interests and, if no overage period is specified, there is a risk the arrangement could be perpetual) the property that will be subject to the overage any individual units to be sold or constructed, making clear whether parking spaces and other ancillary areas form part of a unit for the overage calculation Include a ‘good faith’ clause, as this may help if the buyer does something unexpected to...

Basic terms At the outset, assess whether an overage arrangement is right for the deal. Your client might be better served by agreeing a higher purchase price or entering into a conditional contract instead. Overage provisions can be intricate and costly to negotiate. If overage will apply, check that the terms reflect the buyer’s intended use of the site. the overage period (note that, from 6 April 2010, the rule against perpetuities does not apply to most commercial interests and, if no period is specified, there is a risk the agreement could be perpetual) the property that will be subject to the overage any individual units to be sold or built, making clear whether parking spaces and other ancillary areas are included within a unit for the overage calculation Include a ‘good faith’ clause, as this may help in the event of a dispute...

What is the capital goods scheme? The capital goods scheme (CGS) offers a method to adjust, over a defined timeframe, the VAT initially incurred on substantial capital outlay. For property, that timeframe is ten years and applies where expenditure of £250,000 or more has been made. The adjustment mirrors changes in taxable use during the relevant period. For a more detailed overview, see Practice Note: VAT—capital goods scheme (CGS). When should a property lawyer be alert to the CGS? CGS considerations can arise in the following situations: the sale or purchase of commercial property, residential property, relevant charitable property (RCP) or relevant residential property (RRP) acquiring a property that qualifies as a transfer of a going concern (TOGC) granting a lease where the option to tax has not been, cannot be, or is disapplied In each case, this concerns a property within the CGS, typically one where a VAT-registered party has incurred £250,000 or more (excluding VAT) of capital...

The flowchart below summarises the key steps required in order for an employer to be able to claim or deduct liquidated damages under the JCT Design and Build Contract 2024 While it concentrates on liquidated damages for delay in finishing the Works, the identical procedure equally applies to cases of late completion of a Section. Importantly, under the JCT Design and Build Contract 2024, if the contract ends before the Works are complete, the Employer may recover liquidated damages only up to the termination date, and general damages for any ensuing delay thereafter, rather than further liquidated damages for that period instead. For details, refer to Practice Note: JCT contracts—time—Liquidated damages and termination...

Clause 20.2 claims flowchart summary (FIDIC 2017) This flowchart describes the process for claims by the Contractor or Employer under clause 20.2 of the FIDIC Red and Yellow Books 2017, and applies to the following: Employer claims for the following: additional payment or a decrease in the Contract Price; and/or an extension of the Defects Notification Period Contractor claims for the following: additional payment; and/or an extension to the Time for Completion The party making a claim must also meet any specific requirements found in the clause setting out the relevant entitlement. For more information, see Practice Note: FIDIC contracts 2017—Contractor and Employer claims...

In this issue: Electricity and gas market regulation and licensing Networks and grid connections Renewable energy Capacity Market, balancing services and system flexibility Air emissions, efficiency and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Energy resources on Lexis+® Electricity and gas market regulation and licensing DESNZ has opened a consultation to strengthen Energy Ombudsman (EO) powers. It will concentrate on complaints from domestic energy suppliers, small enterprise complaints against non-domestic suppliers, and heat network complaints. Electricity and gas networks and third-party intermediaries will instead be consulted on separately. The plans include shortening the escalation period for complaints from eight to four weeks, allowing automatic compensation where EO decisions are not put into effect promptly, and granting the EO a statutory designation. DESNZ has also stated that Ofgem will regulate third‑party intermediaries, including energy brokers and price comparison sites, which have previously operated...

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: Financial sanctions Other financial crime Other Practice Compliance updates this week Daily and weekly news alerts Trackers New and updated content Financial sanctions Navigating the complexities of sanctions compliance in law firms—OFSI’s Legal Services Threat Assessment In April 2025, the Office of Financial Sanctions Implementation (OFSI) published its inaugural Legal Services Threat Assessment, as part of a series examining sanctions risks in particular sectors. The report supplies valuable perspective on OFSI’s view of the compliance threats and risks confronting the legal services sector, shining a light on the intricate hurdles the UK profession faces in adhering to financial sanctions. By taking forward OFSI’s recommendations, law firms can strengthen their processes and lessen exposure to sanctions breaches. In a period defined by geopolitical unpredictability and ever more complex sanction regimes, firms must stay alert and act proactively on compliance. See News Analysis: Navigating the complexities of sanctions compliance in law firms—OFSI’s Legal Services Threat...

This Practice Note outlines the principal considerations when preparing contracts for schemes falling within the Building Safety Act 2022 (BSA 2022), and in particular the regime for ‘higher-risk’ buildings. It addresses a range of matters including the lengthened time limits for pursuing claims under the Defective Premises Act 1972 (DPA 1972), the extra regulatory oversight introduced for the pre-construction and construction phases and at completion, and the obligations imposed on ‘dutyholders’ under both BSA 2022 and related secondary legislation, as well as more generally under the Building Regulations 2010, as amended. Drafting points to consider where the employer is a member of the Responsible Actors Scheme are also covered. For a fuller summary of BSA 2022, see Practice Note: Building Safety Act 2022—key provisions and issues, and for guidance on which categories of buildings fall within the ‘Higher-Risk building’ regime, see Practice Note: Building Safety Act 2022—what is a higher-risk building? Limitation Periods BSA 2022 lengthened the window for commencing claims under DPA 1972, s 1(1), and under...

ARCHIVED: This Practice Note is archived and is no longer maintained. This Practice Note examines the effects on dispute resolution arising from temporary measures brought in due to coronavirus (COVID-19), and related procedures too. It should be read alongside Practice Note: Coronavirus (COVID-19) implications for dispute resolution [Archived], and considered in parallel. It is intended to help dispute resolution practitioners grasp the rapid developments to civil court processes and procedures during this period, and how those shifts and the pandemic could affect their practice and particular matters in practice and day-to-day work. It includes civil court-specific guidance issued in response to the coronavirus outbreak, all of which is readily available for quick and consistent access via the ‘jump-links’ in the expandable contents table on the left-hand side of this Practice Note. As most court and tribunal buildings have reopened in accordance with public health guidance, practitioners should use the Gov.uk ‘Find a court or tribunal’ service for up-to-date status information and contact details for courts and tribunals. See Practice...

Slip rule An adjudicator may, within a reasonable period after handing down their decision, put right any accidental error or omission. Commonly described as the ‘slip rule’, it operates where the adjudicator’s mistake is an inadvertent slip that fails to capture their first intention. Though this principle was implied by common law in the absence of any contrary agreement, it is now set out expressly in section 108(3A) of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996). Section 108(3A) was introduced by the Local Democracy, Economic Development and Construction Act 2009 and applies to contracts entered into on or after 1 October 2011 in England and Wales, and on or after 1 November 2011 in Scotland. Under HGCRA 1996, s 108(3A), a contract must contain a written term permitting the adjudicator to correct their decision so as to remove a clerical or typographical error arising by accident or omission...

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...

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The Architect shall: General responsibilities (Stages 0–7) Lead Consultant: advise on scopes, guide specialists, integrate and co‑ordinate design, chair design meetings with minutes, manage Client–Design Team communication, collate stage reports. Act as or liaise with the Principal Designer under CDM 2015 and Building Regulations 2010; manage Client instructions; agree deliverables; design to budget; brief on duties; liaise with the BIM Manager. Stage 0: advise on risks, finance and feedback; visit site; assist with Design Team appointments; Stage 0 report. Stage 1: feasibility; arrange/collate surveys; develop the strategic brief into the Project Brief (sustainability, quality, spatial needs); set procurement, programme and PEP; align budget; Stage 1 report. Stage 2: concept and outline proposals aligned to cost plan and strategies; cost advice; compliance route and pre‑application planning; Stage 2 report. Stage 3: spatial co‑ordination; planning applications/consents, revisions and conditions; select materials/methods; value engineering; tender support; Stage 3 report. Stage 4: technical design, specifications and packages; building regulations submissions; ERs, Construction Phase Plan; Stage...

Yes, bank holidays are excluded when calculating the time period in an adjudication under the Scheme for Construction Contracts. The Scheme for Construction Contracts (the Scheme) sets out certain default rules governing the entitlement to start, and the practical management of, an adjudication process. Under section 108(5) of the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996), the Scheme’s terms are read into a construction contract where it omits, or conflicts with, any of the obligations in subsections 108(1) to (4)...

For the purposes of this Q&A, we have not taken into account the EU–UK Trade and Cooperation Agreement (TCA), as it is not directly enforceable; it is for the UK to give effect to its terms (insofar as not already addressed by the European Union (Future Relationship) Act 2020). For further detail, see News Analysis: Implementing the TCA—business immigration implications. As the EU citizen employees fall outside the EU Settlement Scheme and are not eligible for a frontier worker permit, the main immigration options to review are: Intra-Company Skilled Worker Visitor T5 International Agreement Worker Each category is discussed in more detail below. Intra-Company routes The Intra-Company routes allow organisations with connected overseas entities to transfer certain staff to their UK offices. From 1 January 2021, these routes cover EEA and Swiss citizens as well as non-EEA citizens. Both routes require a minimum period of prior employment with the overseas linked entity. As the EEA citizens are engaged...

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...