RJC Consultants Newsletter  No.12 Autumn 2008

Newsletter No 12 - Autumn 2008

Dispute Resolution Update
By Ray Crabbe
The credit crunch has hit the housing sector particularly hard. However, London centric clients or those with a public sector profile continue to be busy.

There has predictably been an upturn in activity in dispute resolution at RJC and this covers all areas, adjudication, mediation and traditional claims work.

Further advice or details, email raycrabbe@rjc-consultants.co.uk

Business Development
Since acquiring C A Chainey & Associates, we have been developing our joint skills and are rolling out a programme of offering C A Chainey’s quantity surveying services from existing RJC offices in Bristol and Thames Valley.

C A Chainey’s estimating services are being offered to RJC’s existing client base from the Newport office.

For more information, contact raycrabbe@rjc-consultants.co.uk

Racing at Sandown
A great day out was had by all at Sandown Race Course in July. The weather was fine as was the beer and company. Look out for your invitation next year.

Concurrent Adjudication
By Ray Crabbe
What do you do if both parties to a dispute commence adjudications against the other party at the same time? This scenario occurred recently where the contractor was seeking a further EOT and Interim Payment some time after Practical Completion and finally commenced Adjudication in order to get matters resolved. At the same time the Employer, believing there was no crystallised dispute until the Final Account was prepared sought to commence an Adjudication seeking a declaration that a) the Architect had 12 weeks to decide on EOT and b) no interim payment was required until it had been ascertained (i.e. discovered as a matter of fact) that further sums are due, something that could not be done until both the EOT had been decided and evidence of actual cost had been provided by the contractor.

So the RICS received Notice of Adjudication from both parties dealing with similar issues on the same project within 24 hours of each other both requesting the appointment of an Adjudicator to resolve the dispute. RJC wrote to the RICS and requested the same Adjudicator be appointed on both disputes, which they duly did.

The parties agreed that the 2 adjudications could be consolidated and so the Adjudicator was able to proceed with the resultant saving in costs.

For advice on any form of Dispute Resolution please email Ray Crabbe at: raycrabbe@rjc-consultants.co.uk

Am I in Contract?
By Roger Smith
The recently reported case of Haden Young Limited and Laing O’Rourke Midlands Limited before the Honourable Mr Justice Ramsey is an interesting one, and one from which contractors and sub-contractors should take note.

Laing O’Rourke was main contractor on the Ricoh Arena in Coventry and Haden Young carried out the design and installation of the mechanical electrical works.

The tendering process followed a familiar pattern whereby LO’R sent HY an invitation to tender, which enclosed the intended form of main contract, and HY responded with a lump sum fixed price tender setting out certain “contractual clarifications”. LO’R initially sent HY a letter of intent followed by the sub-contract documentation, which HY were asked to sign and execute as a deed.

HY did not sign the sub-contract. They argued that it contained things that had not been agreed. The parties tried to resolve matters; they corresponded, they met, they exchanged advice from their solicitors and from the Employer’s advisers but they were unable to agree certain aspects of the sub-contract, either before works commenced on site or at all.

The main issues in dispute, and preventing the sub-
contract from being executed were:
(i) the limit of liability to be included in warranties to be
provided by HYL
(ii) the limit of consequential losses claimable by LO’R
under the sub-contract

This principle frequently arises in practice. Typically a sub-
contract is not signed because there are “one or two
matters still to be agreed”.

In this case though, the above “one or two matters” were
found to be essential terms and absent agreement of those
essential terms, absent a sub-contract!

It was therefore found that the parties had not concluded
or entered into a sub-contract. It was also found that
because the parties had not entered into a sub-contract,
HYL was entitled to a reasonable remuneration under a
Quantum Meruit for the M&E Works.

For further advice or details, email
rogersmith@rjc-consultants.co.uk

C A Chainey & Associates
C A Chainey operates in all sectors of the construction
industry, offering traditional PQS services, project
administration, estimating and CDM services plus building
surveying and expert witness services.

C A Chainey is currently providing these services on
Nursing Homes, high quality residential developments,
hotels and other sectors including offices and industrial
premises.

They have just commenced work at a new housing scheme
aimed at 1st time buyers in Newport, a mixed office and
residential development in Reading and a house extension
in Chiswick.

For more information contact: info@chainey.co.uk

Please click below to read our other newsletters

Newsletter No 13	0.1MB PDF
Newsletter No 12	2.1MB PDF
Newsletter No 11	0.1MB PDF
Newsletter No 10	0.1MB PDF
Newsletter No 9	1.1MB PDF
Newsletter No 8	0.2MB PDF
Newsletter No 7	1.0MB PDF
Newsletter No 6	0.7MB PDF
Newsletter No 5	1.3MB PDF
Newsletter No 4	1.3MB PDF
Newsletter No 3	1.6MB PDF
Newsletter No 2	1.4MB PDF
Newsletter No 1	1.7MB PDF

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