The general legal principle involved in the formulation of collateral contracts is that while the contractor and client enter into the main agreement, a subsidiary agreement is also formulated between the client and sub-contractor. The connecting link is the agreement between…
Spelling out the rights and responsibilities of the various parties thus becomes very difficult, because the main contract may exist between the client and the contractor, but may not take into account the rights of the other third parties. It may not also adequately represent the rights of the client if there is a violation by the third parties in question.
Collateral contracts are required in construction contracts, where subcontractors perform services for the main contractor rather than the customers themselves and their rights need incorporation into construction agreements. Collateral contracts in effect, establish a connection between parties such as the client and the subcontractors who would not otherwise enter into a direct contractual relationship.
When a contractor expresses an intent to utilize the services of a particular subcontractor, who commences work on this basis, it will be entitled to take legal action if the contractor fails to fulfil any of the implied terms, even if no formal contract exists. In the case of British Steel Corporation v Cleveland Bridge and Engineering Co Ltd (1984)1, the Court held that there was no true agreement between the parties, but the claimants were entitled to recover certain payments due to them on a quantum meruit basis2 and the defendants’ counter claims were not entertained.
Collateral warranties are required to counteract the difficulty associated with establishing a liability in tort when a construction contract is in place; as stated by Lord Scarman, “Their Lordships do not believe there is anything to the advantage of the law in searching for a liability in tort where the parties are in a contractual relationship.”3 The extent to which the Courts could apply duty of care and the tort of negligence would be circumscribed within the contractual terms and ...
Cite this document
(“Construction law Essay Example | Topics and Well Written Essays - 1000 words - 1”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/400028-construction-law
(Construction Law Essay Example | Topics and Well Written Essays - 1000 Words - 1)
“Construction Law Essay Example | Topics and Well Written Essays - 1000 Words - 1”, n.d. https://studentshare.net/miscellaneous/400028-construction-law.
This represents contractual relationships under a standard building procurement. The employer enters into separate contracts with the designer and the contractor. When the designer completes the design, the contractor will carry it out. The employer has direct control over the design, cost and quality elements; however, the process of designing becomes more time-consuming.
Inferior materials used on the exterior of the building 2. Wrong materials used in the reception area floor 3. Defective doors discovered by Innocent's architects and 4. Dampness in the ceiling discovered during the rectification period This section will examine these issues in three main parts.
tated that it should have been designed as a formal protocol rather than as a guidance tool.1 Since the provisions of the protocol are intended to be a guidance tool, they end up creating more confusion on some aspects rather than resolving them.
Construction projects cannot be
According to Yates and Epstein, delays in construction projects for example, may be initiated right at the commencement stage itself due to poor management within the supply chain.1 The question of creation of risk arises from the supply side, since it is
The author states that Health & Safety issues of a construction project are dealt by “the Construction Design and Management Regulations, 1994”. Under this law, an architect can be held accountable if he has failed to forewarn the client about his accountabilities. This law imposes more responsibilities on architects.
ASyS believe that adapting and upholding approach such as making procurement process simple, transparent and in the manner that it safeguards the embezzlement of taxpayers’ moneys are best strategies to
12 Pages(3000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Construction law for FREE!