Off-site construction meaning

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...

ARCHIVED: This checklist has been archived and is not being maintained. Theme Key changes Client duties CDM 2015 is client-focussed: the client holds ultimate responsibility for controlling health and safety on the construction site (SI 2015/51, reg 4), including making sure the principal designer produces the health and safety file. They must also see that this requirement is kept under review and maintained for the duration of the project. Duties for clients under CDM 2015 when managing projects mirror the 2007 obligations (SI 2007/320, regs 9–10), with extra requirements that the client takes reasonable steps to verify the principal designer and the contractor comply with their duties (SI 2015/51, reg 4(6)). Election by clients is likewise captured within client duties under regulation 4 of the 2015 Regulations. NEW 2015 — CDM now extends to domestic clients — this is a new provision under SI 2015/51, reg 7...

This checklist outlines the principal points an employer should assess, and the provisions it ought to require, to achieve a clear and binding letter of intent (LOI) on a construction project. Although the terms ‘contractor’ and ‘employer’ are used, the same approach applies to arrangements between a contractor and a sub-contractor. When drafting and negotiating an LOI, not every matter listed will be relevant; each should be considered in light of the specific circumstances. See Practice Note: Letters of intent—construction for further detail on letters of intent and, for an example of client guidance, see Precedent: Advice to clients—use of letters of intent. Key issues and clauses Parties’ particulars: Check that the employer’s and contractor’s full details are set out at the start of the LOI (including exact company names and, where appropriate, the company number) to prevent any doubt about the identity of the contracting parties. If either is within a corporate group, ensure the correct group company is named as the contracting entity... ...

Flowchart This Flowchart explains the cancellation entitlements that must be offered to consumers entering on-premises, off-premises, and distance contracts for the sale of goods. It is intended for use when a practitioner needs to confirm which cancellation rights apply to consumers purchasing goods in accordance with the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013, SI 2013/3134 (CCR 2013). Additional rights relating to the return of faulty or damaged goods under the Consumer Rights Act 2015 fall outside the scope of this Flowchart. Note 1 A consumer is an individual acting for purposes wholly or mainly outside of their trade, business, craft, or profession. Note 2 Certain sector-specific contracts are governed by their own regimes, such as financial services contracts, rental contracts, and package travel contracts, and are excluded in full from the CCR 2013. For more information, see Practice Note: Distance, doorstep and on-premises sales—Excluded contracts...

In this issue: Business structures Taxes management and litigation Employment taxes Companies and corporation tax VAT Environment Individuals and income tax Dates for your diary Trackers Daily and weekly news alerts New and updated content Latest Q&A Useful information Business structures Court of Appeal upholds UT and FTT decisions that incentivisation awards to partners are subject to income tax (HMRC v BlueCrest Capital Management LP and others and Andrew Dodd and others v HMRC) As noted below, in HMRC v BlueCrest Capital Management LP; and Andrew Dodd v HMRC [2023] EWCA Civ 1481, the Court of Appeal examined the tax position of awards granted to partners under an incentivisation scheme. It affirmed the rulings of the First-tier Tax Tribunal (FTT) and the Upper Tribunal (UT) that, although the awards were not profit share allocations, they still represented income and were chargeable to income tax as miscellaneous income under section 687...

CNO Plant Hire Ltd v Caldwell Construction Ltd [2024] EWHC 2188 (TCC) What are the practical implications of this case? This ruling spotlights the boundaries on using set-off at the enforcement stage. The main practical points are: Adjudication enforcement The court reaffirmed that adjudicators’ decisions should usually be enforced promptly and summarily, despite factual or legal errors, provided the adjudicator had jurisdiction and there was no breach of natural justice It again confirms adjudication’s speed and effectiveness as a construction dispute tool, helping to keep cash flow uninterrupted Set-off restrictions The judgment makes clear that set-off against an adjudicator’s decision will not be permitted unless strict conditions are satisfied If set-off is sought based on a counter-adjudication decision, separate enforcement proceedings must be commenced, highlighting the need for a careful legal strategy where multiple adjudications arise Jurisdiction challenges Jurisdictional objections to adjudication decisions must be clearly articulated and properly pursued...

In this issue: Building safety JCT contracts Adjudication Contract law Collateral Warranties Procurement Projects Daily and weekly news alerts New and updated content Construction trackers Building safety Grenfell Tower Inquiry Phase 2 report On 4 September 2024, the Grenfell Tower Inquiry released its Phase 2 report into the fire at Grenfell Tower, which took place on 14 June 2017. The document aims to explain how the blaze was able to travel so rapidly, within a brief timeframe, through a residential building. It outlines shortcomings across numerous institutions, organisations and individuals over many years, whose combined failures brought about the disaster. The report concludes that the tragedy was the culmination of decades of failings by central government and other bodies with responsibilities within the construction industry...

MF/2 MF/2 sits within the IET and Institution of Mechanical Engineers’ suite of Model Forms. It is intended for domestic (UK) or international agreements dealing solely with the supply of electrical, electronic or mechanical plant, and its full name is MF/2 Model Form of General Conditions of Contract for use in connection with home or overseas contracts for the supply of electrical, electronic or mechanical plant. The core terms have remained unchanged since 1999, save for amendment slips addressing the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) and proposals to align it with MF/1 revision 5. Depending on the contractor’s scope and site characteristics, MF/2 can amount to a contract for ‘construction operations’ and fall within the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996). It contains no adjudication provision and its payment terms do not satisfy those statutory controls—such provisions would need to be added by adapting comparable wording from MF/1. See Practice Notes: What is a construction contract under the HGCRA 1996? ...

This Practice Note explores ground conditions within construction and engineering schemes. It addresses who bears responsibility at common law and highlights contractual mechanisms that can be included in building contracts to manage situations where the contractor meets adverse ground conditions, setting out how that risk is shared between contractor and employer. It also summarises how the JCT, NEC and FIDIC standard forms approach allocation of ground condition risk... What are ‘ground conditions’? ‘Ground conditions’ typically describes the site’s geology, hydrology, soil characteristics and any contamination present. Such conditions may arise naturally, be the result of human activity, or a mixture of both. Artificial or man-made conditions or obstructions can include: Antiquities Landfill Asbestos Disused or existing sewers Unexploded ordnance The phrase does not normally cover short-lived surface features like litter or leaves, nor climatic factors. While ‘ground conditions’ is a common expression in construction contracts, related terms are frequently used as well, such as ‘site conditions’ and ‘physical...

This Practice Note examines when the Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) is engaged on UK energy projects and highlights practical issues that can arise. It should be read together with Practice Note: What is a construction contract under the HGCRA 1996? The HGCRA 1996 applies to all construction contracts, as defined in the Act, across the following jurisdictions: England Wales Scotland When drafting a contract, parties should assess whether the on-site works fall within the scope of the HGCRA 1996 and, if so, ensure the terms are compliant. This discussion frequently surfaces on energy schemes where some or all elements of the works may sit within the statutory exclusions... Does the HGCRA 1996 apply to energy projects? For the HGCRA 1996 to apply, the agreement must meet the definition of a ‘construction contract’ in section 104—being a contract for carrying out (or arranging for, or providing labour for the carrying out of) ‘construction operations’ as set...

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...

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’...

Such works may fall under section 105(1)(b) of the HGCRA 1996 Such works may fall within section 105(1)(b), which treats road maintenance as a construction operation covering the construction, alteration, repair, maintenance, extension, demolition or dismantling of works forming, or to form, part of land, including walls, roadworks, power lines, electronic communications apparatus, runways, docks, harbours, railways, inland waterways, pipelines, reservoirs, water mains, wells, sewers, industrial plant, and installations for land drainage, coast protection or defence. Alternatively, section 105(1)(e) catches operations integral to, preparatory for, or rendering complete those works, including site clearance, earth-moving, excavation, tunnelling, laying foundations, erecting, maintaining or dismantling scaffolding, site restoration, landscaping, and providing roadways and other access. No specific authority concerns these works, yet courts have often held that less orthodox activities are construction operations, for example: Baldwins Industrial Services plc v Barr: crane with driver hire held integral, preparatory to, or completing works under sections 105(1)(a) and (e). Some contracts are excluded from being a ‘construction...

Cases which distinguish leases from licences are very fact sensitive. The usual starting question is whether there is ‘exclusive possession’—the legal ability to keep all others off the land. This feature is the badge of a tenancy; in contrast, a licensee does not enjoy it. Where the parties’ arrangement is set down in a written agreement, the enquiry centres on the proper construction of that instrument, interpreted against its factual background. Do the terms, on their true meaning, confer exclusive possession? More precisely, if an agreement grants: (i) exclusive possession; (ii) for a term; and (iii) at a rent, then, absent a lodging set-up or special circumstances, it amounts to a tenancy: Street v Mountford. Alternatively, where nothing has been recorded in writing, whether exclusive possession has been conferred is determined by considering all the circumstances, including asking: what the parties would ordinarily have expected in the particular context; and whether services are provided in the name of the owner or of the occupier......