Procurement and the Importance of Well Drafted Contracts in the Construction and Engineering Industry
Procurement and the Importance of Well Drafted Contracts in the Construction and Engineering Industry
Q. What is the lawyer’s role in construction and engineering procurement?
A. The lawyer’s role in the procurement process depends on who we are acting for. Construction and engineering projects are highly risky undertakings. Good procurement will properly consider, manage and allocate those risks.
Q. Do you advise on the use of Standard Forms of Contract?
A. Yes we regularly advise on the use of the standard forms of contract. The quality of the standard forms varies, but they are a good starting point because the parties are often familiar with them.
It is usually advisable however to amend the standard forms to respond to the unique nature of each project, and to properly allocate risk between the parties.
Q. Are all construction contracts based on a standard form?
A. It is usually just the main contract that will be based on a standard form and on occasion professional forms of appointment can be based on standard forms too.
Other types of construction contract will often be drafted by specialist construction and engineering solicitors acting for the various parties involved. Although these aren’t standard forms as such, experienced construction and engineering practitioners will know all about the current market norms, so most well-drafted contracts will be very similar in content.
Q. What types of contract might be drafted by a construction and engineering solicitor?
A. They are almost too numerous to mention but they might include:
- a. Development agreements
- b. Collateral warranties and third party rights clauses
- c. Performance Bonds
- d. Third party guarantees
- e. Escrow agreements
- f. Copyright licences
- g. Access licences
- h. Novation agreements
- i. As well as, of course, amending standard forms of contract to respond to the requirements of each project and to properly allocate risk.
Q. What if I need a solution that is not just about construction and engineering?
A. In addition we work closely with colleagues in IBB’s real estate, residential development and commercial teams in relation to the preparation and negotiation of other forms of contract that have a bearing on the construction process such as:
- a. Agreements relating to the sale, purchase and letting of land
- b. Agreements for the provision of power and sustainable energy including Esco agreements
- c. Planning agreements including section 106 agreements
- d. Funding agreements
For more information on procurement in construction and engineering or to discuss another construction or engineering law matter please contact Paul Brampton or one of our engineering or construction solicitors on 01895 207276 or email us at construction@ibblaw.co.uk. Alternatively please visit https://www.ibblaw.co.uk/service/construction-and-engineering.
Construction and Engineering Law Resources
For more information on the following issues please visit the respective page:
Standard Construction and Engineering Contracts
