Contracts can be tricky, and we are often presented with the same questions, so we have put together a few FAQs together in variaous mediums. Our contract consultants are happy to answer any questions you have directly too, so please give us a call!
Retention is held on construction contracts as a fiduciary fund to pay for defects that might arise in the defects liability period.
There is usually a mechanism in the contract for the deduction of retention from interim applications as work proceeds.
Retentions are usually 3% or 5% of the amount of the payment certificate, but can be any agreed amount.
The terms of the contract will set out when retention is released. Usually a release consists of 2 moiety (halves) releases.
No, only if there is a mechanism in the Contract that permits them to deduct it.
A director has the liability for ensuring that the company complies with the Consumer Services Act 2015.
A person would rarely be sent to prison unless the matter was a very serious breach.
By adjudication, litigation or arbitration.
It ensures that there is a transparent contract between both parties so they can understand the terms and conditions of the contract between the parties, and avoids the risk of non-payment as a result of any breach of the terms by the seller.
Adjudication Services specialise in adjudication and dispute resolution which is a relatively quick process (28 days) and will allow a construction specialist to decide the outcome of a dispute.
The payment terms provide the details of when interim and final payments are to be made, how the sums are calculated and when the payment will be received.
The programme is the period and/or timescale that has been agreed for the seller to carry out the work.
The scope of work is the quotation or specification incorporated into the contract that explains what work will be done for the price.
The contract should explain the recourse for late payment, including the interest rates.
You need to serve them with a notice explaining the reasons why they have to pay. The terms of your contract should have a process to resolve disputes. If they don’t, it's time to contact us to update your terms and conditions and help you find the best alternative dispute remedy for your particular issue.
A construction contract is any binding agreement to carry out construction services. There are many recognised contracts available online.
You can buy standard contracts online, such as the JCT contracts, but you need to choose one that's suitable for the job and you will still need to fill in all the details.
However, a carefully worded quotation can be a contract if unequivocally accepted by the buyer.
Any matter on which the parties cannot agree. It usually involves payment of a sum of money or withholding of money.
We can prepare contracts for the parties, however we promote that the seller incorporates all the details of the contract in its offer for agreement of the buyer at that time.
Adjudication Services pride itself in helping contractors and subcontractors in resolving their differences, and its team have vast experience in construction adjudication.
The process is set out in the Housing Grants Construction & Regeneration Act 1996 (Construction Act) and the Local Democracy, Economic and Development Act 2009 (often called the Local Democracy Act).
The first step is to give notice of a dispute and then issue a Notice of Intention to Adjudicate. Once an adjudicator is appointed, the claimant needs to issue its referral after which the adjudicator gives directions. The adjudicator's decision is usually given within 28 days.
Adjudication is not litigation and does not need to be carried out by a lawyer or a consultant. However, parties to a dispute are best to have advice to help them through the process, a bit like a divorce lawyer. Lawyers generally charge by the hour. Their rates are typically £250-£350/hour whereas Adjudication Services charge a ‘Flat Fee’ or ‘Success Fee’.
The adjudicator decides who pays his fees. Usually, each party bears its own costs of the process. There is an advantage of using Adjudication Services as its fee structure can be based on success.
The nomination fee for the appointment of an adjudicator (which is less than £500) is paid by the feferring party.