Category: Building Contracts

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 […]

Standard Building Contracts 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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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.  […]

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 […]

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 […]

Standard Form Contracts Almost invariably,  standard form building contracts as adopted or amended are used. The terms of the contract and their application will usually be clear. However, in other cases, he parties may not have formalised their agreement and there may be scope for ambiguity. The standard institute building contracts typically contain articles of […]