Contract sum analysis meaning

Any resolution of a dispute should be set out in a signed, enforceable written agreement that precisely records the parties’ terms. This reduces the prospect of later misunderstanding and allows a party to commence proceedings if the other side does not comply. As the agreement is a contract, contract law governs its drafting and interpretation, so it must be written with clarity. This Checklist highlights the key considerations of particular importance to construction disputes. For illustrative clauses and deeper analysis (including drafting notes), see Precedent: Settlement agreement for construction dispute (long form). Ensure that settlement negotiations are conducted on a without prejudice basis State expressly that settlement discussions are conducted on a ‘without prejudice’ basis so that, if talks fail, any proposed concessions cannot be relied upon by the other party in subsequent legal proceedings. Do not assume that terms such as ‘confidential’ or ‘off the record’ offer comparable protection. For further detail, see Practice Note: Without prejudice communications. Who is entering into the settlement?...

On 17 April 2024, JCT released the 2024 versions of its Design and Build (DB) Contract and the Design and Build Sub-Contract (DBSub), together with the accompanying guides. The JCT Design and Build forms are aimed at projects where the contractor is responsible for completing the design as well as delivering the works. The JCT DB Sub-Contracts are intended for use where the main agreement is the JCT DB, and may apply either when the sub-contract package is fully designed or when the sub-contractor must design part or all of the works. In this piece, we explore some of the principal updates in the 2024 JCT DB documents compared with the 2016 suite, concentrating on JCT DB 2024 (ie the main contract). Reference copies of JCT DB 2024 and JCT DBSub 2024, and their companion guides, can be found on Lexis+ Construction under the sub-topic ‘JCT contracts 2024’ within the main topic ‘Standard form construction contracts’. They are also available via Practice Note: JCT contracts 2024—reference copies. What are...

In this issue: Advertising, marketing and sponsorship Brexit Confidential information Consumer protection Contracts International Sale and supply of goods Supplier management Daily and weekly news alerts New and updated content Dates for your diary Trackers Advertising, marketing and sponsorship PECR—a serious but non-deliberate breach still warrants a substantial penalty (Monetise Media Ltd v Information Commissioner) In a full-merits reassessment of a monetary penalty notice (MPN), the First-Tier Tribunal (FTT) heard Monetise Media Ltd’s (MML) appeal against the Commissioner’s decision to impose a £125,000 MPN for breach of the Privacy and Electronic Communications (EC Directive) Regulations 2003 (PECR). The FTT replaced that sum with a reduced penalty of £85,000, finding that: (i) MML had “instigated” the dispatch of unsolicited marketing messages by third-party affiliates; (ii) MML acted negligently rather than deliberately; and (iii) the Commissioner erred by adopting too high a starting point and according undue weight to aggravating factors. Authored by Edward...

In this issue: Guarantees Sustainable finance Debt capital markets Derivatives No Weekly Highlights on 24 April 2025 Daily and weekly news alerts New and updated content Useful information Guarantees Appealing guarantees (Jones v City Electrical Factors Ltd) The High Court dismissed an appeal from a County Court judgment that held a guarantor personally responsible for debts of about £190,000. In doing so, the court clarified when a ‘conditional payment obligation’ can amount to a ‘liquidated sum’, how such a liability engages section 267 of the Insolvency Act 1986, and the broader approach to construing commercial contract terms. This ruling, together with its analysis, is of clear significance for directors, liquidators and legal practitioners dealing with the drafting of guarantees and the robust enforcement of personal guarantees. For further insight, see News Analysis: Appealing guarantees (Jones v City Electrical Factors Ltd), by Stephen Alexander and Benjamin Meggitt-Smith of Mourant Ozannes (Jersey) LLP...

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 reviews the Conditions of Contract for Plant and Design Build 1999 (widely known as the FIDIC Yellow Book 1999) and the Conditions of Contract for EPC/Turnkey Projects 1999 (the FIDIC Silver Book 1999). Both are intended for scenarios where the Contractor, rather than the Employer, undertakes the design of the Works, but there are important differences, which are outlined in this Practice Note and considered at a high level. For deeper analysis of each form, see Practice Notes: FIDIC contracts—introduction to the Yellow Book 1999 and FIDIC contracts—introduction to the Silver Book 1999 for background and context. New editions of the Yellow and Silver Books were issued in December 2017. For more information, refer to Practice Note: FIDIC contracts 2017—what’s changed? [Archived]. These materials provide helpful orientation too. What types of projects are the contracts suitable for? Although both contracts envisage the Contractor being responsible for carrying out all, or the vast majority, of the design, and both are fixed price 'lump sum' contracts, that...

Court of Appeal—professional negligence ARCHIVED : This Practice Note has been archived and is not maintained. The Court of Appeal upheld an appeal in a claim against solicitors, holding that the loss of a chance head of damage was too remote. At first instance, the judge concluded that Lewis Silkin LLP had fallen below the required standard by not advising their client to include a jurisdiction provision in his employment agreement with a franchisee involved in the Indian Premier League’s Twenty20 competition. Because no jurisdiction clause appeared in the contract, when the client later issued proceedings against the franchisee over a severance entitlement, he faced jurisdictional challenges (ultimately dismissed) brought by the franchisee, which postponed his obtaining judgment for £10 million in severance. The client’s case was that, with proper advice on jurisdiction, the contract would have contained an exclusive jurisdiction clause. On that footing, he said, he would have secured judgment for the severance sum sooner (as there would have been no hold‑ups arising from jurisdiction objections) and...

ARCHIVED: This Precedent is archived and is not being maintained. The Contract consists of the completed Design and Build Contract 2011 Edition published by the JCT (as amended by Amendment 1: CDM Regulations 2015), and is subject to the following amendments: RECITALS Third Recital Delete and replace with: ‘The Contractor has: reviewed the Site and satisfied himself regarding its measurements, position and other pertinent matters; considered the Employer’s Requirements and is satisfied that the Contractor’s Proposals and Contract Sum Analysis will fulfil the Employer’s Requirements; and accepted responsibility for the whole of the design contained in the Employer’s Requirements and the Contractor’s Proposals.’ ARTICLES Article 1 After ‘shall’ insert ‘carry out and’...

The Contract consists of the finalised Design and Build Contract 2024 Edition published by JCT subject to these amendments: RECITALS Third Recital Third Recital Delete and insert: 'The Contractor has: (a) reviewed the Site and confirmed he is satisfied about its measurements, position and other pertinent matters (b) considered the Employer’s Requirements and is content that the Contractor’s Proposals and Contract Sum Analysis will satisfy the Employer’s Requirements, and (c) undertaken to accept responsibility for the whole design contained in the Employer’s Requirements and the Contractor’s Proposals.' ARTICLES Article 1 Article 1 After 'shall' insert 'carry out and' Articles 6 and 7 [ See drafting note ] Article 9 Article 9 Delete Article 9 and insert: 'Not used.' Article 11 Insert new Article 11 as follows: 'Article 11 [ To be added on the face of the contract ] The Employer and the Contractor agree that the modifications in the Schedule of Amendments attached hereto (as initialled by...

The Contract consists of the completed SBCC Design and Build Contract for use in Scotland, 2016 Edition, and is subject to these amendments: RECITALS Third Recital Delete and replace with: The Contractor has inspected the Site and is satisfied with its measurements, position and other pertinent matters; The Contractor has examined the Employer’s Requirements and is satisfied that the Contractor’s Proposals and Contract Sum Analysis will meet the Employer’s Requirements; and The Contractor has agreed to take responsibility for the whole design contained within the Employer’s Requirements and the Contractor’s Proposals. ARTICLES Article 1 Following the word ‘shall’, insert: ‘carry out and’. Article 6 Add at the end: ‘The Contract Sum includes the Contractor’s price for fulfilling the duties of Principal Contractor.’ Article 8 Delete Article 8 and substitute: ‘Not used.’ Article 11 Insert a new Article 11 as follows: ‘Article 11 [ To be added on the face of the...