A recent publication by the Transport Committee recommends that pavement parking be made illegal and for new offences to be introduced.
Contract variations can be a risky business!
In the fourth part of our series on contract management pitfalls, we look at the risks arising from varying the terms of construction contracts.
You might think that having negotiated a contract, it would not be necessary to vary the terms during delivery of the works or services. However, there are occasions when it is appropriate to vary contractual mechanisms. For example, adjusting key performance indicators (KPIs) and incentives, or adjusting the final account mechanism if works are due to continue beyond the expiry of a term service contract.
We often see disputes arise out of a misunderstanding of the consequences of a variation, or where one party wishes to revert to the original contract terms.
The case of Mears Limited v Shoreline Housing  1396 (TCC) highlights some of the difficulties that can arise. In this case, the parties agreed to change the schedule of rates contained within the contract (with the new rates referred to as the “Composite Rates”), but they didn’t agree a formal contractual variation. A dispute arose as to the correct value due to Mears, with Mears calculating payment based on the Composite Rates and Shoreline applying the rates tendered by Mears in the schedule of rates. The Technology and Construction Court agreed with Mears that the Composite Rates applied, requiring Shoreline to pay the higher rates.
How to manage the risk
There are two ways to mitigate the risks of contract variations:
- Firstly, ensure that the contract is managed in accordance with the written terms of the contract; and
- Secondly, ensure that any contract variations are captured clearly in writing and signed by all parties. It is particularly important to document the full extent of the variation, including identifying any additional payments, when those payments are due and the value of those payments.
It is also important to consider whether the variation has any implications under the Public Contracts Regulations 2015. Seeking support from legal advisers to review (or draft) the variations and comment on the procurement implications of any variation, can also assist in managing the risks.
For more information
Our response to the Government’s consultation “A New Deal for Renting” has now been submitted following the consultation closing on 12 October.
In response to the Women and Equalities Select Committee Report back in July 2018 on sexual harassment in the workplace, the Government is looking at a number of initiatives.
What do you do if an employee persists in raising the same concern, again and again, taking up copious amounts of management time and patience
Creating an inclusive and diverse workplace culture is no longer seen as “management speak” but rather as a necessity for success.
The Court of Appeal held that no pro-rata mechanism was included in the Working Time Regulations 1998, and so part-year employees were entitled to 5.6 weeks’ paid holiday just like their colleagues wo
In the latest Chambers and Partners rankings, Anthony Collins Solicitors has maintained its position as a Band 1 law firm.
An issue being brought into public view in the latter part of this decade, thanks to a healthy handful of royals and celebrities, is the existence of hidden disabilities.
Whilst we all wait in limbo for the UK’s future in Europe, Hazel covers some basics worth noting...
Looking at the Conservative’s latest proposal about shared ownership right to buy, concerns from associations about the impact that might have on their funding ability are well placed.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.