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July 2017

Building Contract Formation and Case Law. Shulmans LLP. July 2017. Prepared by: Phil Morrison. Driven by results. Building Contract Formation and Case Law. Allocating responsibility, risks and obligations in contract formation Hidden contract terms Fit for purpose Case Law Update.

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July 2017

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  1. Building Contract Formation and Case Law Shulmans LLP July 2017 Prepared by: Phil Morrison Driven by results 1

  2. Building Contract Formation and Case Law • Allocating responsibility, risks and obligations in contract formation • Hidden contract terms • Fit for purpose • Case Law Update 2

  3. Building Contract Formation and Case Law • Allocation of Risk – Follow the money • Known Unknowns • Design liability • Ground Conditions ( unforeseen ) • Contamination 3

  4. Building Contract Formation and Case Law Risk - Design Risks • Design and Build • Reasonable skill and care • Fitness for purpose • Regularly and diligently 4

  5. Building Contract Formation and Case Law Implied Terms • Construction Act 1996 • Sale of Goods Act 1979 • Sale and Supply of Goods Act 1994 • Supply of Goods and Services Act 1982 • Late Payment of Commercial Debts Act (Interest) 1998 5

  6. Building Contract Formation and Case Law Fitness for Purpose • Reasonable skill and care • Suitable for purpose stated • MT Hojgaard A/S v E.ON Climate and Renewables UK Robin Rigg East Ltd [2015] EWCA Civ 407 6

  7. Building Contract Formation and Case Law Implied Terms • MT Hojgaard A/S v E.ON Climate and Renewables UK Robin Rigg East Ltd [2015] EWCA Civ 407 • Lowe v W Marshall Joinery Ltd [2011] EWCA 794 • Harrison & Others v Shepherd Homes Ltd [2011] EWCA 1811 7

  8. Building Contract Formation and Case Law • ISG Construction Limited v Seevic College [2014] EWHC 4007 TCC • Aspect Contract (Asbestos) Limited v Higgins Construction Plc [2015] UK SC38 • Galliford Try Building Limited v Estura Limited [ 2015 ] EWHC 412 9 (TCC) • Leeds City Council v Waco UK Limited [2015] EWHC 1400 • Henia Investments Inc v Beck Interiors Limited [2015] EWHC 2433 (TCC) • Caledonian Modular Limited v Mar City Developments Limited [2015 ]

  9. Building Contract Formation and Case Law Third Party Agreements • Agreements for Lease • Funding Agreements • Forward Funding • Purchase Agreements 8

  10. Building Contract Formation and Case Law LAD’s • Cavendish Square Holdings BV & Another v Makdessie/Parking Eye Limited v Beavis [2015] UKSC 57 • Temloc Limited v Erril Properties Limited [1987] 39 BLR 30 • Silent Vector Pty Ltd t/as Sizer Builders v Squarcini [2008] WASC 246 9

  11. Building Contract Formation and Case Law Unfair Contract Terms • Ampleforth Abbey Trust v Turner and Townsend Project Management Limited • Saint Gobain Building Distribution t/a IDS v Hillmead Joinery (Swindon) London [2015] EWHC B7 TCC 10

  12. Building Contract Formation and Case Law Case Law Update • Grove Developments Ltd v Balfour Beatty Regional Construction Ltd [2016] EWHC 168 (TCC) • MT Hojgaard A/S v E.ON Climate and Renewables UK Robin Rigg East Ltd [2015] EWCA Civ 407 • Lowe v W Marshall Joinery Ltd [2011] EWCA 794 • Harrison & Others v Shepherd Homes Ltd [2011] EWCA 1811 11

  13. Building Contract Preparation and Case Law Ground Developments Limited v FCC Construccion SA & Others [2016] EWHC 1946 (TCC) • Merseylink Project - £1.8bn • Groundworks / Remediation Contract - £6m • NEC – Sub-Contract • Letter of Intent / Exchange of Letters • Adjudication 10

  14. Building Contract Formation and Case Law Case Law Update • Cavendish Square Holdings BV & Another v Makdessie/Parking Eye Limited v Beavis [2015] UKSC 57 • Temloc Limited v Erril Properties Limited [1987] 39 BLR 30 • Silent Vector Pty Ltd t/as Sizer Builders v Squarcini [2008] WASC 246 • Ampleforth Abbey Trust v Turner and Townsend Project Management Limited • Saint Gobain Building Distribution t/a IDS v Hillmead Joinery (Swindon) London [2015] EWHC B7 TCC 12

  15. Building Contract Formation and Case Law QUESTIONS 13

  16. Building Contract Formation and Case Law Phil Morrison Shulmans LLP Tel: 0113 297 8934 Email: pmorrison@shulmans.co.uk 14

  17. Shulmans LLP 10 Wellington Place Leeds, LS1 4AP Tel: +44 (0)113 245 2833 DX: 729700 LEEDS 69 www.Shulmans.co.uk Shulmans LLP is a member of the Interlegal network of international law firms with associated offices throughout the world. Shulmans LLP is a limited liability partnership registered in England and Wales at the above address with registered No. OC348166 and regulated by the Solicitors Regulation Authority.

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