It is often said – in project troubleshooting – that construction contracts either run twice as long as the contract period and cost three times the price or run three times the length of the contract period and cost twice the price.
Whilst this is somewhat anecdotal and thankfully rarely proves to be the case, there are a number of reasons why construction contracts can run late or over budget.
These range from unforeseen ground conditions through to variations by the client and recently due to both (contractors under-pricing contract sums to obtain the contract and/or there has been inflation in the construction industry such that subcontract packages which were not let at inception but only because some 18 months or even longer down the line have increased beyond the level expected).
There are a range of reasons as to how disputes could arise.
We have experience of many such issues and it is often to our clients’ advantage if they seek advice early in the life cycle of a project rather than let issues such as these remain undiscussed as the elephant in the room.
Dealing with issues as and when they arise can be far more productive than leaving them for a final “dispute” at the end of the project.
The most important point is that all parties to a construction project must record on an ongoing basis progress and any delay events. Records, both written, photographic and video, are essential to be able to demonstrate the entitlement of one side or the other with respect to the final evaluation of the contract price.
Whilst adjudication has been available for a number of decades, legislation passed in 1996 provided statutory legislation…
There are many different ways to procure a construction project. The distinctions are between the use of standard form contracts…