As construction projects progress and develop, changes occur. These changes can be costly and are often a source of disputes.

This article includes practical tips to help parties get properly paid for additional work and reduce the likelihood of disputes. It also covers the basics such as why construction contracts have variations clauses, what variations are, and how they should be instructed and valued.

A situation which is all too familiar to many in the construction industry is that you have finished a project and submitted your final account, but a few weeks later, you receive a payment certificate back with an unsettling phrase like “for discussion” and deducting substantial contra-charges against your account, effectively bringing the final amount payable down to zero – or even into negative figures.

Practical completion is a significant milestone in any construction project, but it is not always well-understood. In this article we look at what practical completion is, what might prevent practical completion occurring, and how you can avoid being caught out by common hazards and unscrupulous clients.

Despite best efforts, defects are a common occurrence in the construction industry. Whether caused by unforeseen challenges, material inconsistencies, or the complex interplay of various teams, many factors can lead to defects that may require rectification.
A question that often comes up is how long are you on the hook for these defects and when do they stop being your problem? While this may seem like a straightforward question, people often have misconceptions about the duration of their liability under a contract.

Early warning notices and compensation events are specific features of the NEC form of contract. They have detailed procedures which must be carefully followed.

Those procedures are simple enough once you understand them, but they are time-consuming. The risk of not following them properly is high. Failing to issue the right notices at the right times can mean that rather than being entitled to an extension of time and additional payment, you are instead liable for damages.

Retention is frequently the source of payment disputes between parties, resulting in arguments over how much is due, whether it is due to be paid, and arguments about defects and other contra charges.

Often claims for retention will be ignored entirely and some main contractors employ other sharp practices in an attempt to hold on to retention monies. MERITEXTS has assisted many companies overcome these issues and recover retentions that they are owed.

If your client requires you to procure goods or services from a particular sub-contractor or supplier, then common sense might suggest that your client should be responsible if that sub-contractor or supplier performs poorly. Unfortunately, this is a situation where the legal reality is very different.

You are likely to be aware that parties to construction contracts have the right to suspend their works in the event of non-payment, but are you equipped to make sure that you are actually entitled to suspend your works and that you have done so in accordance with the contract?

Work on construction projects sometimes begins with a crucial decision: to commence work under a Letter of Intent (LOI) or to wait for a full contract. LOIs can mean getting on with a job swiftly, but they also present significant dangers for the unwary. This article explores why LOIs are used, common pitfalls and how to avoid them.

Do you need advice or assistance in relation to a JCT contract? Have you been asked to sign a JCT contract, and you are unsure of the effect of its terms or amendments made to it, or how you should put together the documents that accompany it? Or perhaps you have queries as to how the contract operates, such as how to deal with discrepancies or inaccuracies in the documents that make up your contract, or how to make claims for additional time or money.

The NEC contract continues to grow in popularity in Uganda. You might be tendering for a project on the NEC form and be unfamiliar with how it works or how it differs from other standard forms of construction contract. Or you might be engaged in an ongoing NEC contract and have questions about how its procedures are to be followed or what is to be done in a particular circumstance.

The NEC contract is unlike other standard forms in some significant ways. It is highly specialist, can be difficult to understand, and can, when not properly followed, result in very costly disputes.

Many construction projects suffer from delay. Contractors often have their hands full with trying to re-programme and mitigate delays, without also thinking about what steps they should be taking to record and document the issues and submit notices that the contract requires in order to claim extension of time, protect their position and protect them from liquidated damages.