MacRoberts on Scottish Construction Contracts 3e

Foreword by the Rt Hon Lord Hope of Craighead KT xiii
<p>Preface xv</p>
<p>1 Construction Contracts in General 1</p>
<p>1.1 Introduction 1</p>
<p>1.2 Definition of a construction contract 1</p>
<p>1.3 Parties involved in a construction project 5</p>
<p>1.4 Types of construction contract 15</p>
<p>1.5 The SBCC forms of building contract 23</p>
<p>1.6 The NEC3 forms of contract 25</p>
<p>1.7 Building Information Modelling (BIM) 27</p>
<p>1.8 Soft Landings 29</p>
<p>2 Procurement 32</p>
<p>2.1 Introduction 32</p>
<p>2.2 The EU public procurement regime and EU economic and legal principles 33</p>
<p>2.3 Beyond the EU 35</p>
<p>2.4 Conditions for application of the procurement rules 36</p>
<p>2.5 Who must comply with the Regulations? 36</p>
<p>2.6 Treatment of a proposed contract as a works contract, supply contract or a services contract 37</p>
<p>2.7 What are the relevant financial thresholds? 40</p>
<p>2.8 Is there an applicable exclusion? 41</p>
<p>2.9 Types of procurement procedure 42</p>
<p>2.10 The open procedure 42</p>
<p>2.11 The restricted procedure 43</p>
<p>2.12 The negotiated procedure with advertisement 46</p>
<p>2.13 The competitive dialogue procedure 49</p>
<p>2.14 Awarding the contract 53</p>
<p>2.15 The Alcatel mandatory standstill period 54</p>
<p>2.16 The use of framework agreements in public procurement 56</p>
<p>2.17 Remedies against contracting authorities (bidder grievances and complaints) 57</p>
<p>2.18 Awarding low–value contracts fairly 61</p>
<p>2.19 Forthcoming changes in the Procurement law landscape 62</p>
<p>3 Entering into a Construction Contract 64</p>
<p>3.1 Introduction 64</p>
<p>3.2 Essentials of written and oral contracts 64</p>
<p>3.3 Capacity to contract 71</p>
<p>3.4 Implied terms 73</p>
<p>3.5 Letters of intent 78</p>
<p>3.6 Incorporation of terms by reference to another document 80</p>
<p>3.7 Contract interpretation 83</p>
<p>3.8 Signing a building contract 84</p>
<p>4 Employers Obligations 87</p>
<p>4.1 Introduction 87</p>
<p>4.2 Possession of the site 88</p>
<p>4.3 Administration 92</p>
<p>4.4 Information and instructions 95</p>
<p>4.5 Variations 97</p>
<p>4.6 Other obligations 102</p>
<p>5 Contractors Obligations 103</p>
<p>5.1 Introduction 103</p>
<p>5.2 Completing the works 103</p>
<p>5.3 The quality of the work 118</p>
<p>5.4 Defective work 128</p>
<p>5.5 Progress of the works 131</p>
<p>5.6 Insurance and indemnity 138</p>
<p>5.7 The Joint Fire Code 139</p>
<p>5.8 Health and safety 140</p>
<p>6 Time 141</p>
<p>6.1 Introduction 141</p>
<p>6.2 Commencement of the works 141</p>
<p>6.3 Time of the essence 142</p>
<p>6.4 Progress of the works 142</p>
<p>6.5 Adjustment of the Completion Date and extension of time for completion 143</p>
<p>6.6 Partial possession, sectional completion and acceleration 152</p>
<p>6.7 Completion of the works 153</p>
<p>6.8 Damages for late completion 154</p>
<p>6.9 Liquidated damages 155</p>
<p>6.10 The SBC/DB 158</p>
<p>6.11 The NEC3 159</p>
<p>7 Certification 168</p>
<p>7.1 Introduction 168</p>
<p>7.2 Formal requirements of certificates 168</p>
<p>7.3 Interim certificates 171</p>
<p>7.4 Final certificates 176</p>
<p>7.5 Other certificates 180</p>
<p>7.6 Roles and duties of certifiers 183</p>
<p>8 Payment 188</p>
<p>8.1 Contractual payment 188</p>
<p>8.2 Adjustment of the contract price 206</p>
<p>8.3 Loss and expense 215</p>
<p>8.4 Quantum meruit 220</p>
<p>8.5 Quantum lucratus 222</p>
<p>8.6 Contractual retention 224</p>
<p>8.7 Project bank accounts (PBA) 227</p>
<p>9 Ending a Construction Contract 229</p>
<p>9.1 Introduction 229</p>
<p>9.2 Frustration and impossibility 229</p>
<p>9.3 Force majeure 232</p>
<p>9.4 Termination 233</p>
<p>9.5 Repudiation and rescission 242</p>
<p>9.6 Death and illness 243</p>
<p>9.7 Illegality 244</p>
<p>9.8 Insolvency 245</p>
<p>9.9 Prescription 248</p>
<p>10 Remedies 254</p>
<p>10.1 Introduction 254</p>
<p>10.2 Rescission 255</p>
<p>10.3 Specific implement 256</p>
<p>10.4 Damages for breach of contract 257</p>
<p>10.5 Finance charges 261</p>
<p>10.6 Interest 263</p>
<p>10.7 Interdict 267</p>
<p>10.8 Withholding payment 267</p>
<p>10.9 Suspending performance 269</p>
<p>10.10 Delictual claims 271</p>
<p>11 Sub–contractors and Suppliers 275</p>
<p>11.1 Introduction 275</p>
<p>11.2 SBCC Standard Sub–Contracts 275</p>
<p>11.3 NEC3 Standard Sub–Contracts 276</p>
<p>11.4 Nominated and domestic sub–contractors 276</p>
<p>11.5 Named and specialist Sub–Contractors 277</p>
<p>11.6 Direct payments to sub–contractors 279</p>
<p>11.7 Privity of contract 280</p>
<p>11.8 Relationship between main and sub–contracts 282</p>
<p>11.9 Restrictions on sub–contracting 283</p>
<p>11.10 Main contractor s discount 284</p>
<p>11.11 Suppliers 285</p>
<p>11.12 Retention of title clauses 285</p>
<p>11.13 Supply of goods by sub–contractors 287</p>
<p>11.14 Adequate mechanism for payment 288</p>
<p>12 Assignation, Delegation and Novation 290</p>
<p>12.1 Introduction 290</p>
<p>12.2 Common law 291</p>
<p>12.3 Effect of assignation upon claims 292</p>
<p>12.4 Delectus personae 294</p>
<p>12.5 Assignation under the SBC and the SBC/DB 294</p>
<p>12.6 Assignation under the NEC3 295</p>
<p>12.7 Delegation 295</p>
<p>12.8 Novation 296</p>
<p>13 Rights forThird Parties 300</p>
<p>13.1 General 300</p>
<p>13.2 Collateral warranties 300</p>
<p>13.3 Typical clauses 303</p>
<p>13.4 Effects of the 1996 Act on collateral warranties 310</p>
<p>13.5 Third party rights schedule 311</p>
<p>13.6 Assignation 313</p>
<p>14 Insurance 314</p>
<p>14.1 Insurance: General principles 314</p>
<p>14.2 Insurance under the SBC and the SBC/DB 318</p>
<p>14.3 Insurance under the NEC3 323</p>
<p>14.4 Professional indemnity insurance 325</p>
<p>14.5 Latent defects insurance 327</p>
<p>14.6 Project insurance 327</p>
<p>15 Litigation 329</p>
<p>15.1 Introduction 329</p>
<p>15.2 The litigation process 329</p>
<p>16 Adjudication 338</p>
<p>16.1 Introduction 338</p>
<p>16.2 The scope of Part II of the 1996 Act, as amended by the 2009 Act 338</p>
<p>16.3 The notice of adjudication 340</p>
<p>16.4 Appointment of the adjudicator 341</p>
<p>16.5 The referral notice 342</p>
<p>16.6 Conduct of the adjudication 342</p>
<p>16.7 The decision 347</p>
<p>16.8 Adjudicator s fees and costs/expenses of the parties 348</p>
<p>16.9 Liability of the adjudicator 351</p>
<p>16.10 Enforcement proceedings 351</p>
<p>16.11 Proceedings following adjudication 373</p>
<p>16.12 Human rights 373</p>
<p>16.13 Adjudication in PPP contracts 375</p>
<p>17 Arbitration 377</p>
<p>17.1 Introduction 377</p>
<p>17.2 The Arbitration (Scotland) Act 2010 380</p>
<p>18 Other Forms of Dispute Resolution 396</p>
<p>18.1 Mediation 396</p>
<p>18.2 Settlement agreements 408</p>
<p>18.3 Expert determination 414</p>
<p>18.4 Early neutral evaluation 418</p>
<p>18.5 Senior management review 419</p>
<p>18.6 Dispute boards 422</p>
<p>19 Tax 426</p>
<p>19.1 Value Added Tax (VAT) 426</p>
<p>19.2 The Construction Industry Scheme 433</p>
<p>20 Health and Safety 437</p>
<p>20.1 Introduction 437</p>
<p>20.2 Common law 437</p>
<p>20.3 Health and Safety atWork etc. Act 1974 438</p>
<p>20.4 The Construction (Design and Management) Regulations 2007 444</p>
<p>20.5 The SBC and the SBC/DB provisions 455</p>
<p>20.6 The NEC3 provisions 456</p>
<p>21 RegulatoryMatters: Competition in Construction 457</p>
<p>21.1 Competition law in the UK: Introduction 457</p>
<p>21.2 Competition law: Overview 457</p>
<p>21.3 Penalties 458</p>
<p>21.4 The Chapter I prohibition 459</p>
<p>21.5 The Roofing and English Construction cases 462</p>
<p>21.6 The cartel offence 464</p>
<p>21.7 Leniency 465</p>
<p>21.8 The Chapter II prohibition 466</p>
<p>21.9 Summary 467</p>
<p>22 RegulatoryMatters: The Bribery Act 2010 468</p>
<p>22.1 Compliance:The Bribery Act 2010 468</p>
<p>22.2 The Bribery Act 2010: The offences 469</p>
<p>22.3 The Bribery Act 2010: The defence 474</p>
<p>22.4 Facilitation payments 477</p>
<p>22.5 Consequences of offences under the Bribery Act 478</p>
<p>22.6 Prosecution under the Bribery Act 482</p>
<p>22.7 Construction industry risk profile 482</p>
<p>22.8 The SBC, the SBC/DB, the NEC3 and the Bribery Act 484</p>
<p>23 Guarantees and Bonds 486</p>
<p>23.1 Guarantees 486</p>
<p>23.2 Bonds 491</p>
<p>Tables of Cases 497</p>
<p>Table of Statutes 522</p>
<p>Table of Statutory Instruments 529</p>
<p>Table of References 538</p>
<p>Index 547</p>