Bespoke construction contract - Revision history

Designing Buildings at 10:53, 30 October 2023

2023-10-30T10:53:50Z

← Older revision		Revision as of 10:53, 30 October 2023
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	English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the Act		English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the Act

−	= Related articles on Designing Buildings ~~Wiki~~ =	+	= Related articles on Designing Buildings =

	* Boilerplate		* Boilerplate

Designing Buildings at 09:46, 24 September 2020

2020-09-24T09:46:10Z

← Older revision		Revision as of 09:46, 24 September 2020
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	* Standard form of contract.		* Standard form of contract.

−	[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 18:18, 17 September 2019

2019-09-17T18:18:54Z

← Older revision		Revision as of 18:18, 17 September 2019
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	* Levelling the playing field		* Levelling the playing field
	* Modifying clauses in standard forms of contract.		* Modifying clauses in standard forms of contract.
		+	* Preliminary contracts.
	* Procurement route.		* Procurement route.
	* Standard form of contract.		* Standard form of contract.

	[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 12:14, 9 August 2019

2019-08-09T12:14:45Z

← Older revision		Revision as of 12:14, 9 August 2019
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	* JCT.		* JCT.
	* Latham report.		* Latham report.
		+	* Levelling the playing field
	* Modifying clauses in standard forms of contract.		* Modifying clauses in standard forms of contract.
	* Procurement route.		* Procurement route.

Editor at 17:32, 2 May 2019

2019-05-02T17:32:07Z

← Older revision		Revision as of 17:32, 2 May 2019
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	English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the Act		English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the Act

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

		+	* Boilerplate
	* Breach of contract.		* Breach of contract.
	* Causes of construction disputes.		* Causes of construction disputes.

Designing Buildings at 12:19, 10 February 2017

2017-02-10T12:19:07Z

← Older revision		Revision as of 12:19, 10 February 2017
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−	Most construction projects are procured using a standard form of contract that includes standardised, non-negotiated provisions, usually in pre-printed, or digital ~~forms~~. These are sometimes referred to as ~~“boilerplate~~ contracts,~~” "~~contracts of adhesion,~~"~~ or ~~"~~take it or leave it~~"~~ contracts.	+	Most construction projects are procured using a standard form of contract that includes standardised, non-negotiated provisions, usually in pre-printed, or digital form. These are sometimes referred to as boilerplate contracts, contracts of adhesion, or take it or leave it contracts.

−	In the construction industry, there are a number of standard contracts, subcontracts, warranties and appointment agreements published by organisations such as the Joint Contracts Tribunal (JCT), the Royal Institute of British Architects (RIBA), the Institution of Civil Engineers and so on. Such agreements can be ~~useful~~ as they have a track record of being used between parties, and their precise meaning has been tested by case law. Standard form contracts are very often cheaper than bespoke alternatives, familiar to the parties involved (reducing tendering, negotiation and administration costs), and tend to contain fewer unforeseen anomalies.	+	In the construction industry, there are a number of standard contracts, subcontracts, warranties and appointment agreements published by organisations such as the Joint Contracts Tribunal (JCT), the Royal Institute of British Architects (RIBA), the Institution of Civil Engineers and so on. Such agreements can be effective as they have a track record of being used between parties, and their precise meaning has been tested by case law. Standard form contracts are very often cheaper than bespoke alternatives, familiar to the parties involved (reducing tendering, negotiation and administration costs), and tend to contain fewer unforeseen anomalies.

	They can also allow some flexibility, with a wide range of variations, options and schedules that can be tailored to meet the needs of a specific project without altering the construction of the contract clauses.		They can also allow some flexibility, with a wide range of variations, options and schedules that can be tailored to meet the needs of a specific project without altering the construction of the contract clauses.
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	For more information see: Modifying clauses in standard forms of construction contract.		For more information see: Modifying clauses in standard forms of construction contract.

−	Bespoke contracts are specially drafted to suit the specific requirements of a particular project.	+	Bespoke contracts are specially drafted to suit the specific requirements of a particular project. On some projects, in particular the more complex ones, creating a bespoke contract may be seen as the most efficient means of agreeing terms. Bespoke contracts are also commonly used for very simple supply agreements, where the standard forms may be considered unnecessarily complex and inflexible.

−	~~On some projects, in particular~~ the ~~more complex ones, creating a bespoke contract may be seen as the most efficient means~~ of ~~agreeing terms. Bespoke~~ contracts ~~are also commonly used for very simple supply agreements~~, ~~where~~ the ~~standard forms may be considered unnecessarily complex~~ and ~~inflexible~~.	+	The seminal Latham Report advised against the use of bespoke contracts, but despite this, 24% of respondents to the National Construction Contracts and Law Survey 2012 indicated that they choose to use purpose-written bespoke contracts.

−	~~The Latham Report advised against the reliance on bespoke~~ contracts, ~~but despite this, 24% of respondents to the National Construction Contracts~~ and ~~Law Survey 2012 indicated that~~ they ~~choose to use purpose~~-~~written~~ bespoke contracts.	+	Bespoke contracts may not adequately or fairly make provision for all circumstances, and they are not supported by a history of case law. A large number of legal issues have been created by non-standard bespoke contracts, and they are often costly and time consuming to draft, and disputes can be costly and time consuming to resolve in court.

−	Bespoke contracts ~~may not adequately or fairly make provision for all circumstances~~, and ~~that they are not supported~~ by ~~a history of case law~~. A large ~~number of legal issues have been created by non-standard bespoke contracts~~, and ~~they are often costly and time-consuming to produce, as well as being untested in court~~.	+	Bespoke clauses can unintentionally make the meaning of contracts ambiguous, and this can be seized upon by parties in dispute, or seeking additional time or payment. On large projects, there can also be extensive schedules, specifications and other contract documents which may also contain conflicting or ambiguous provisions.

−	~~There is a provisions make the meaning of the contract ambiguous,~~ and ~~this can be seized upon by parties in dispute~~, ~~or seeking additional time or payment. On large projects, there can also~~ be ~~extensive schedules~~, ~~specifications and other contract documents which may also contain conflicting or ambiguous provisions~~.	+	For these and other reasons, contractors tend to be wary of bespoke contracts, with the perception that most clients’ create bespoke contracts to transfer risk.

−	~~For these and other reasons, contractors are usually quite wary of bespoke contracts, with the perception that most clients’ create bespoke contracts to transfer risk.~~	+	However, the contractor have little choice but to accept the client’s bespoke contract if they want the work. The commercial judgment should consider:
−		+
−	However, the contractor ~~often has~~ little choice but to accept the client’s bespoke contract if they want the work. The commercial judgment should consider ~~the following key issues~~:	+

	* How much they want the job in question (perhaps they see it as being a high-profile project that will reap benefits in terms of publicity and future business opportunities).		* How much they want the job in question (perhaps they see it as being a high-profile project that will reap benefits in terms of publicity and future business opportunities).
	* How much they are prepared to do for the client in question (perhaps if they have a good working history with the client, or hope that they will offer them more work in the future).		* How much they are prepared to do for the client in question (perhaps if they have a good working history with the client, or hope that they will offer them more work in the future).
	* What the potential risks and costs are.		* What the potential risks and costs are.
−	* How much they can charge to do the job and ~~make~~ it worth taking on the contractual risks.	+	* How much they can charge to do the job and whether this makes it worth taking on the contractual risks.

−	Since the contract will govern the relationship between the parties, it is important that it is carefully reviewed ~~with~~ all legal issues considered. This may require seeking legal advice.	+	Since the contract will govern the relationship between the parties, it is important that it is carefully reviewed and all legal issues considered. This may require seeking legal advice.

−	English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the ~~Housing Grants, Construction and Regeneration~~ Act	+	English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the Act

	= Find out more =		= Find out more =

Designing Buildings at 12:12, 10 February 2017

2017-02-10T12:12:24Z

← Older revision		Revision as of 12:12, 10 February 2017
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	* How much they want the job in question (perhaps they see it as being a high-profile project that will reap benefits in terms of publicity and future business opportunities).		* How much they want the job in question (perhaps they see it as being a high-profile project that will reap benefits in terms of publicity and future business opportunities).
	* How much they are prepared to do for the client in question (perhaps if they have a good working history with the client, or hope that they will offer them more work in the future).		* How much they are prepared to do for the client in question (perhaps if they have a good working history with the client, or hope that they will offer them more work in the future).
		+	* What the potential risks and costs are.
	* How much they can charge to do the job and make it worth taking on the contractual risks.		* How much they can charge to do the job and make it worth taking on the contractual risks.

−	Since the contract will govern the relationship between the parties, it is important that it is carefully reviewed with all legal issues considered. ~~The obligations it seeks~~ to ~~impose~~ and the ~~proposed remuneration should be fully understood~~.	+	Since the contract will govern the relationship between the parties, it is important that it is carefully reviewed with all legal issues considered. This may require seeking legal advice.
		+
		+	English law does not require a particular form to contracts, and so the terms and ultimately the risk allocation is the choice of the parties involved. However, the Housing Grants, Construction and Regeneration Act applies to all contracts for 'construction operations' setting out requirements relating to payment and adjudication. The Scheme for Construction Contracts (England and Wales) Regulations applies when construction contracts do not comply with the Housing Grants, Construction and Regeneration Act

	= Find out more =		= Find out more =

Designing Buildings at 12:02, 10 February 2017

2017-02-10T12:02:36Z

Designing Buildings at 11:54, 10 February 2017

2017-02-10T11:54:59Z

← Older revision		Revision as of 11:54, 10 February 2017
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−	~~A bespoke~~ construction ~~contract is~~ a ~~specially-defined~~ contract in ~~accordance~~ with the requirements of a particular project. For some projects, especially more complex ones, ~~amending a standard form of contract will be deemed insufficient, and~~ creating a bespoke contract may be seen as being the most efficient means of ~~achieving a client’s requirements~~. ~~However,~~ for ~~more routine projects~~, the ~~disadvantages of using bespoke contracts, very often outweigh the advantages~~.	+	Most construction projects are procured using a standard form of contract that includes standardised, non-negotiated provisions, usually in pre-printed, or digital forms. These are sometimes referred to as “boilerplate contracts,” "contracts of adhesion," or "take it or leave it" contracts.
		+
		+	In the construction industry, there are a number of standard contracts, subcontracts, warranties and appointment agreements published by organisations such as the Joint Contracts Tribunal (JCT), the Royal Institute of British Architects (RIBA), the Institution of Civil Engineers and so on. Such agreements can be useful as they have a track record of being used between parties, and their precise meaning has been tested by case law. They can also allow some flexibility, with a wide range of variations, options and schedules that can be tailored to meet the needs of a specific project without altering the construction of the contract clauses.
		+
		+	For more information see: Standard form of contract.
		+
		+	Where this does not give sufficient flexibility, it is possible to amend standard forms of contract. However, this is not always recommended, as there is a complex interaction between many of the terms of standard forms, and modification can change the balance of risk and create legal uncertainty.
		+
		+	For more information see: Modifying clauses in standard forms of construction contract.
		+
		+	Bespoke contracts are specially drafted to suit the specific requirements of a particular project.
		+
		+	For some projects, especially the more complex ones, creating a bespoke contract may be seen as being the most efficient means of agreeing terms. Bespoke contracts are also frequently used for very small supply agreements, where the standard forms may be considered to be unnecesarily complex.

	Although the Latham Report advised against the reliance on bespoke contracts, 24% of respondents to the National Construction Contracts and Law Survey 2012 indicated that they choose to use purpose-written bespoke contracts. Not only is this considered inadvisable because of the risk that bespoke contracts may not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law, but it is also a poor reflection of how inflexible and ineffective the industry perceives many of the standard forms of contract to be.		Although the Latham Report advised against the reliance on bespoke contracts, 24% of respondents to the National Construction Contracts and Law Survey 2012 indicated that they choose to use purpose-written bespoke contracts. Not only is this considered inadvisable because of the risk that bespoke contracts may not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law, but it is also a poor reflection of how inflexible and ineffective the industry perceives many of the standard forms of contract to be.

Editor: Created page with "A bespoke construction contract is a specially-defined contract in accordance with the requirements of a particular project. For some projects, especially more complex ones, amen..."

2017-01-11T14:50:02Z

Created page with "A bespoke construction contract is a specially-defined contract in accordance with the requirements of a particular project. For some projects, especially more complex ones, amen..."

New page

A bespoke construction contract is a specially-defined contract in accordance with the requirements of a particular project. For some projects, especially more complex ones, amending a standard form of contract will be deemed insufficient, and creating a bespoke contract may be seen as being the most efficient means of achieving a client’s requirements. However, for more routine projects, the disadvantages of using bespoke contracts, very often outweigh the advantages.

Although the Latham Report advised against the reliance on bespoke contracts, 24% of respondents to the National Construction Contracts and Law Survey 2012 indicated that they choose to use purpose-written bespoke contracts. Not only is this considered inadvisable because of the risk that bespoke contracts may not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law, but it is also a poor reflection of how inflexible and ineffective the industry perceives many of the standard forms of contract to be.

Standard form contracts are very often cheaper, familiar to the parties involved (therefore reducing the tendering costs), and tend to contain fewer unforeseen anomalies which can cause problems in the form of legal issues.

A large number of legal issues can be created by non-standard bespoke contracts, and they are often costly and time-consuming to produce, as well as being untested in court.

There is a risk that the insertion of new provisions can make the contract appear ambiguous in places. These uncertainties can be seized upon by parties where they can give rise to potential entitlement to change and thereby additional time and costs. For major infrastructure projects, there can also be extensive schedules to the contract which may also contain conflicting or ambiguous provisions.

For these and other reasons, contractors are usually quite wary of bespoke contracts, with the perception being that most clients’ bespoke contracts are about the transfer of risk to them.

However, the contractor often has little choice but to accept the client’s bespoke contract if they want the work. The commercial judgment should consider the following key issues:

* How much they want the job in question (perhaps they see it as being a high-profile project that will reap benefits in terms of publicity and future business opportunities).
* How much they are prepared to do for the client in question (perhaps if they have a good working history with the client, or hope that they will offer them more work in the future).
* How much they can charge to do the job and make it worth taking on the contractual risks.

Since the contract will govern the relationship between the parties, it is important that it is carefully reviewed with all legal issues considered. The obligations it seeks to impose and the proposed remuneration should be fully understood.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Breach of contract.
* Causes of construction disputes.
* Construction contract.
* Contract documents.
* Contract negotiation.
* Design and build.
* Essentials of a contract.
* JCT.
* Latham report.
* Modifying clauses in standard forms of contract.
* Procurement route.
* Standard form of contract.

[[Category:Client_procedures]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

← Older revision		Revision as of 12:02, 10 February 2017
Line 1:		Line 1:
	Most construction projects are procured using a standard form of contract that includes standardised, non-negotiated provisions, usually in pre-printed, or digital forms. These are sometimes referred to as “boilerplate contracts,” "contracts of adhesion," or "take it or leave it" contracts.		Most construction projects are procured using a standard form of contract that includes standardised, non-negotiated provisions, usually in pre-printed, or digital forms. These are sometimes referred to as “boilerplate contracts,” "contracts of adhesion," or "take it or leave it" contracts.

−	In the construction industry, there are a number of standard contracts, subcontracts, warranties and appointment agreements published by organisations such as the Joint Contracts Tribunal (JCT), the Royal Institute of British Architects (RIBA), the Institution of Civil Engineers and so on. Such agreements can be useful as they have a track record of being used between parties, and their precise meaning has been tested by case law. They can also allow some flexibility, with a wide range of variations, options and schedules that can be tailored to meet the needs of a specific project without altering the construction of the contract clauses.	+	In the construction industry, there are a number of standard contracts, subcontracts, warranties and appointment agreements published by organisations such as the Joint Contracts Tribunal (JCT), the Royal Institute of British Architects (RIBA), the Institution of Civil Engineers and so on. Such agreements can be useful as they have a track record of being used between parties, and their precise meaning has been tested by case law. Standard form contracts are very often cheaper than bespoke alternatives, familiar to the parties involved (reducing tendering, negotiation and administration costs), and tend to contain fewer unforeseen anomalies.
		+
		+	They can also allow some flexibility, with a wide range of variations, options and schedules that can be tailored to meet the needs of a specific project without altering the construction of the contract clauses.

	For more information see: Standard form of contract.		For more information see: Standard form of contract.
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	Bespoke contracts are specially drafted to suit the specific requirements of a particular project.		Bespoke contracts are specially drafted to suit the specific requirements of a particular project.

−	~~For~~ some projects, ~~especially~~ the more complex ones, creating a bespoke contract may be seen as ~~being~~ the most efficient means of agreeing terms. Bespoke contracts are also ~~frequently~~ used for very ~~small~~ supply agreements, where the standard forms may be considered ~~to be unnecesarily~~ complex.	+	On some projects, in particular the more complex ones, creating a bespoke contract may be seen as the most efficient means of agreeing terms. Bespoke contracts are also commonly used for very simple supply agreements, where the standard forms may be considered unnecessarily complex and inflexible.
−		+
−	~~Although the Latham Report advised against the reliance on bespoke contracts, 24% of respondents to the National Construction Contracts~~ and Law Survey 2012 indicated that they choose to use purpose-written bespoke contracts. Not only is this considered inadvisable because of the risk that bespoke contracts may not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law, but it is also a poor reflection of how inflexible ~~and ineffective the industry perceives many of the standard forms of contract to be~~.	+

−	~~Standard form~~ contracts ~~are very often cheaper~~, ~~familiar~~ to the ~~parties involved (therefore reducing the tendering costs),~~ and ~~tend~~ to ~~contain fewer unforeseen anomalies which can cause problems in the form of legal issues~~.	+	The Latham Report advised against the reliance on bespoke contracts, but despite this, 24% of respondents to the National Construction Contracts and Law Survey 2012 indicated that they choose to use purpose-written bespoke contracts.

−	A large number of legal issues ~~can be~~ created by non-standard bespoke contracts, and they are often costly and time-consuming to produce, as well as being untested in court.	+	Bespoke contracts may not adequately or fairly make provision for all circumstances, and that they are not supported by a history of case law. A large number of legal issues have been created by non-standard bespoke contracts, and they are often costly and time-consuming to produce, as well as being untested in court.

−	There is a ~~risk that the insertion of new~~ provisions ~~can~~ make the contract ~~appear~~ ambiguous ~~in places. These uncertainties~~ can be seized upon by parties ~~where they can give rise to potential entitlement to change and thereby~~ additional time ~~and costs~~. ~~For major infrastructure~~ projects, there can also be extensive schedules ~~to the~~ contract which may also contain conflicting or ambiguous provisions.	+	There is a provisions make the meaning of the contract ambiguous, and this can be seized upon by parties in dispute, or seeking additional time or payment. On large projects, there can also be extensive schedules, specifications and other contract documents which may also contain conflicting or ambiguous provisions.

−	For these and other reasons, contractors are usually quite wary of bespoke contracts, with the perception ~~being~~ that most clients’ bespoke contracts ~~are about the~~ transfer of risk ~~to them~~.	+	For these and other reasons, contractors are usually quite wary of bespoke contracts, with the perception that most clients’ create bespoke contracts to transfer risk.

	However, the contractor often has little choice but to accept the client’s bespoke contract if they want the work. The commercial judgment should consider the following key issues:		However, the contractor often has little choice but to accept the client’s bespoke contract if they want the work. The commercial judgment should consider the following key issues: