Drawings Generally, the drawings are produced by the design team. Many modern buildings are complex so that the production of the relevant drawings is itself a process which must be coordinated and planned. Drawings provide a model of the design, concept and ideas behind a building. Formal drawings will be required as the basis of a planning application. Further detailed drawings will comprise the instructions […]
New Regime (2014) Prior to the 2014 Regulations, the principal obligations were to give a Commencement Notice, and where necessary, to obtain a Fire Safety Certificate and a Disabled Access Certificate (covering compliance with parts B and M of the Building Regulations). The form of Commencement Notice under the previous Building Control Regulations was signed by the person carrying out the works, on behalf of […]
2014 Rules The new building control regulations apply to works commenced after March 2014. The building owner must appoint a design certifier, an assigned certifier and a competent builder. A design certifier and assigned certifier must be either a registered architect, chartered engineer or chartered building surveyor. The functions are now added to the scope of traditional contracts appointing design and construction professionals. Accordingly, the […]
Construction stage – assessment and inspection Building Control Authorities are to adopt a formal policy for the assessment and inspection of building work as notified on the Building Control Management System. Authorities should adopt a risk management-based approach in undertaking this work. This will include consideration of matters such as: – (the use of the building; the type of construction; the level of experience of […]
Authority Powers Under the Act of 1990 Building Control Authorities have strong powers of inspection, enforcement and prosecution. While Building Control Authorities use enforcement and the courts to effect compliance where reasonable and appropriate to do so, desired results can also be achieved, and often are, through discussion and persuasion with the threat of legal action. It is expected that Building Control Authorities will undertake […]
Defective Concrete Blocks Act The cracking of external walls of dwellings in Donegal and Mayo due to the crumbling of concrete blockwork, came to light in 2013. The Minister for Housing, Planning and Local Government, with the consent of the Minister for Public Expenditure and Reform, responded with Regulations to provide for a grant scheme to provide support for affected homeowners. The implementation of the […]
Regulation of Providers The Purpose of the Regulation of Providers of Building Works Act 2022 is to provide for the establishment of a register to be known as the Construction Industry Register Ireland, to regulate providers of building works. This registration body determines the standards and competence required of providers of building works and investigate and adjudicate complaints against them. The Act provides that the […]
Construction Contracts Covered The Construction Contracts Act 2013 applies to contracts for the carrying out of construction operations, arranging for the carrying out of construction operations by others whether under subcontract or otherwise, or providing his own labour or labour of others for the carrying out of construction operations. A construction contract includes an agreement to do architectural, design, or surveying work, providing advice on […]
Scope The Construction Contracts Act 2013 introduced provisions in Ireland, similar to those in force in England since 1996. Construction contracts covered by the Act are contracts for the carrying out of construction operations, arranging for the carrying out of construction operations by others whether under sub-contract or otherwise, or providing his own labour or labour of others for the carrying out of construction operation. […]
Facilitating Legislation Public private partnerships are arrangements between the public sector and the private sector for the delivery by the private sector of certain public infrastructure and/or public services, which traditionally would have been provided by the public sector. Public private partnerships covered under the Act include arrangements with the private sector partner in relation to either the design and construction of an asset where […]
Debt Funderf Requirements The debt funders are granted security over the company’s assets. In effect, the sponsor’s liability is limited to their equity contribution or any other obligations they may own in another capacity. The lenders will analyse the project and undertake considerable legal, technical, and financial due diligence on the project. Key considerations include the allocation of risk, the obligations of consortium members, covenants, […]
PPP Finance Under PPP arrangements, in contrast to more traditional procurement, the private sector finances the projects from the outset. It receives payment or pre-payment, provided the asset meets performance criteria and availability. There may be a unitary payment upfront or payment over a period. As the sponsors are unlikely to be in a position to put up all sums to fund the project forward […]
Charges Following an event of default, the lender will typically be in a position to appoint a receiver over the assets of the borrower company. They should be in a position to obtain control of the company’s assets to the exclusion of the company’s controllers and its creditors. This will enable the receiver to run the business and use the assets, sell them, restructure, et […]
Financial The awarding party wishes to secure the best value for money. A competitive process will be undertaken to structure the commercial and contractual terms in a way that optimises risk allocation and minimises the financial contribution required by the authority. The lowest award in terms of net present value over the term, having regard to qualitative issues and risk transfer, must be assessed. Best […]
Background & Overview Public private partnerships involve the private sector in the provision of public services. It changes the role of the public sector from owner and provider to enabler, purchaser and guardian of the public interest for the end users. The public-private partnership model gained ground in the 1980s and 90s, consistent with the theme of rolling back government involvement in the economy. This […]
Project Agreement The principal agreement in a PPP arrangement is the project contract. Originally, different agreements were used for different phases of the project, for example, the development agreement to cover the development and construction and operation agreement or the facilities management agreement to cover the operational phase. The more modern practices provide a single agreement to cover all the elements applicable to a particular […]
New Public Sector Contracts New public-sector contracts came into force in 2007 replacing GLDA. A significant motivation for the new contracts was to prevent extra costs and costs overrun by passing the risks and responsibilities to the contractors and consultants insofar as possible. The contract seek to give the public-sector a significant advantage relative to the previous position. The new contracts use new languages and […]
Delay & Compensation The public works contracts make claims for delay more difficult than in pre-existing and conventional contract. There are extensive recordkeeping obligations. There are obligations to update programmes which may disincentivise the contractor in making claims. The contractor is deemed to have included in the price and in programme for delays and compensation to the extent provided in the schedule. No compensation is […]
Engineering Contracts There are the standard forms of engineering contracts. The principles are broadly similar to those in respect of construction contracts. Engineers Ireland publish a standard civil engineering project contract. Engineering contracts are used in relation to projects such as roads, bridges and sewage systems. Most building and construction contracts have significant engineering elements. Construction of a building, apartment block or a building for […]
Claims for Payment Under standard forms of engineering contract, at the end of every month, the contractor submits interim valuations of work done. This is to be certified by the engineer and paid within 28 days. There is retention pending expiry of the defects liability period. Not later than three months after the date of the maintenance certificate, a contractor shall submit to the engineer, […]
Contract Types Engineering contracts fall into a number of major categories. There are lump-sum, measurement, cost reimbursement, design and construct, and all in / turnkey contracts. The contract documents adopted in civil engineering construction are usually on a measurement basis. They commonly comprise instructions to tenderers, a form of tender and appendix, a form of agreement, conditions of contract, bond, special conditions of contract, schedule […]
Engineering Contract Conditions. The standard conditions emerged after the Second World War in the United Kingdom. Prior to this, there are divergent forms of contract used by various public and private bodies. The Engineers Institute General Conditions date from 1980. They largely restate the UK ICE conditions of contract. These may been replaced in the UK by the NEC’s new engineering contract forms which later emerged. […]
Bill of Quantities The bill of quantities may or may not be a contract document. The bill of quantities is a detailed schedule or description of the works prepared by a quantity surveyor in accordance with standards published and agreed by the quantity surveying profession. The bill of quantities will describe the materials and inputs required for each element of the job. Bills of quantities […]
Specification The specification sets out the works in detail. It contains a description of the nature and quality of the works and the required workmanship. It is usually read in conjunction with drawings and bills of quantities. Together they should furnish sufficient evidence to define the works. The specification should include on-site facilities and general information about the project, availability of services, means of access […]
Termination and Discharge Building and engineering contracts generally provide for termination of the contractor’s employment in the case of specified serious breaches. There is generally a procedure involving notice. There will commonly be a warning period upon the expiry of which, the termination takes effect if there has been no intermediate remediation. Typically, the procedure discharges the obligations of one party. The provisions of the […]
The Role of the Engineer The engineer is normally a member of one of the engineering professional institutions. The engineer is appointed by the employer/developer or promoter. However, he owes duties to both the contractor and employer under the contract. The appointment of the engineer will generally by way of the professional institute’s relevant standard terms. It will provide for terms of appointment, duration of […]
Standard Contracts Background The standard forms of building contracts used in Ireland have evolved through a number of editions since the 19th century. The Irish contracts and British contracts have a similar broad origin. In the UK, the Joint Contracts Tribunal was established in the 1930s and became responsible for subsequent revisions of the standard form contract. The Royal Institute of the Architecture of Ireland […]
Taking Possession The contractor is to set the date for taking possession of the works. The contractors is to begin the works, y proceed with them and complete them on or before the date(s) of completion specified. This is subject to the various provisions for the contractor which potentially liable for extension of time. If the date for possession is deferred,, the contractor is entitled […]
Breach of Building Contracts The purpose of damages is to place the innocent party in the position in which he would have been in, if the contract was performed in accordance with its terms. The general principles of damages apply. See the sections on damages. The person claiming damages must mitigate his loss. This requires that he take reasonable steps to minimise the loss. In […]
Overview Subcontracts are common in the construction and engineering industries. This reflects specialisation, efficiency, the increased skill base and complexity. General contractors employing all various trades and specialists are very rare in modern times. Construction contracts usually limit the extent to which the main contractor may undertake its contractual obligations through subcontractors. The consent of the employer or contract administrator to subletting the works will […]
Administrator and other Roles Building and engineering contracts of any significant scale, provide for the appointment of an architect, engineer, or other professionals to administer the contract. In the context of building contracts, an architect usually administers the contract. Architects are commonly appointed under standard RIAI terms of engagement. His obligation is not to be on the site constantly but to make such visits as […]
Types of Insurance The RIAI contract deals with three insurance issues relevant to the works. The first is the obligation to insure against loss of property. The second obligation is to insure against injury to employees and members of the public and third party. The third relates to defects in the actual works themselves and the buildings of which they form part. The first two […]
Nature of Collateral Warranties Collateral warranties are commonly given in construction projects. A collateral warranty is a contractual obligation, usually undertaken by a consultant, contractor or subcontractor to a third-party with whom he does not have a direct contractual relationship. Contractual warranties will typically be required by the terms of the tender. The contractual warranty provides a link and liability which would not otherwise exist. […]
Professionals Appointment The professional appointment will define the terms of the consultant’s authority. In the case of the architect, he will typically have a very wide-ranging authority. The extent will depend on the extent of services he provides. The general rules of agency apply. The architects and engineers have no direct relationship with the contractor. They owe duties under the contract to certify in good […]
Guarantee Account On the signing of the contract or issue of a letter of intent whichever is earlier, the employer is to pay a sum equal to two months’ average payments (calculated in accordance with the tender) into a guarantee account in the joint names of the employer and contractor) This is to be used to pay the contractor. On presentation of architect certificates the […]
Arbitration If a dispute arises between the parties regarding any of the provisions of the contract, it is to be referred to conciliation in accordance with the conciliation procedures published by the RIAI in agreement with the Society of Chartered Surveyors and the Construction Industry Federation. If the settlement of the dispute is not achieved under the procedures, either party may refer the dispute to […]
Employer’s Role The employer has a passive role under a building contract. His principal obligation is to facilitate access to the works for the contractor and pay monies certified as due under the contract when due. The employer must cooperate with the contractor where necessary to enable the contractor to discharge his duties. He must not interfere with the contractor in carrying out his obligations. […]