School of Civil Engineering and Surveying
Student Registration Number:
Course: C2170 F/P
C1659 F/P
Date Set: 26/11/2015
U23423: Construction Law, Contracts & Dispute Resolution
Lecturer: Richard Wise
Date Due: 10/03/2016
Artefact: Coursework 2
Ref: U23423/2
Weighting: 25%
Objectives:
1. To provide the student with a critical awareness of the forms of non-litigious dispute resolution available.
2. To develop a conceptual understanding of the procedures to be adopted in each means of dispute resolution.
3. To justify an informed choice when considering how to resolve a complex dispute or difference.
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Task Outline:
The task is to prepare a professional style report, referenced appropriately, relating to the contractual remedies and practical solutions which may be available to the project team in the event of a substantial delay caused by an unexpected issue on site.
Introduction:
You are part of the legal services team of a project management practice, recently appointed by Buildrite Limited, a contractor engaged under the NEC3 form of contract, on a project for the construction of a large online shopping and distribution warehouse for Waitco, a major supermarket chain.
The contractor has been in dispute with the employer regarding the Project Manager’s (PM’s) assessment of time relating to a substantial number of variations and various delays caused by disrupted and abortive work issues as well by bad weather. The contractor considers that the extension of time allowed by the PM does not represent an appropriate assessment of the excusable delays on the project. While negotiations continue, Buildrite has continued to work but is reporting an estimated delay of eight weeks beyond the extended completion date. The PM has notified Buildrite that they will issue a notice of non-completion and deduct liquidated damages at the rate of £35,000 per week as provided in the contract.
Buildrite has issued many notices under the contract requesting the compensation events to be properly evaluated for the purpose of assessment of changes of the Prices, the Completion Date and Key Dates. They have submitted detailed claims for both the time and costs associated with the delays. Each time the PM, on behalf of the employer, has replied that they do not consider that the contractor has the grounds to claim and insisted that they continue with the work.
Your task will be:
1. To prepare a report to Buildrite, advising the contractor of their options and giving advice on the validity of the type of claims which are being made.
2. To draft a formal notice of adjudication in letter form in accordance with the provisions of the Scheme for Construction Contracts, referring correctly to relevant sections of the HGCRA 96 and the SCC 98.
3. After a few days, Buildrite have taken your advice and issued the notice of adjudication which you drafted for them and received acknowledgement of receipt from the employer. The response goes on to deny the existence of a dispute on the grounds that the PM has properly assessed the extension of time in accordance with the contract documents. Buildrite is concerned that the employer is trying to avoid going to adjudication. Write a brief report outlining the implications of this situation and the practical issues which should be considered, making reference to specific case law or published articles.
Coursework submission & deadline:
This assignment must be submitted by the deadline date at the top of the front sheet. It should be uploaded to the Moodle drop box as a single .pdf file. The mark sheet must be included at the front of your submission – if you complete this electronically you can save it as a pdf file through word.
There are many websites which can join .pdf files into a single .pdf, or you can download one of the free pdf management programmes from the web. Adobe Acrobat is available on University computers.
Learning outcomes (numbers relate to the Unit Descriptor Learning Outcomes):
1. Manage and apply contract principles to the regular matters which occur during the life of a project.
2. Assess and evaluate contract principles and relevant case law relating to construction disputes and assess the management needs resulting from these particular issues, recommending the most appropriate procedures and remedies available to the parties to a dispute.
3. Evaluate and appraise an informed choice when faced with a contractual difference.
Reading / References:
This is a professional report style, so there is unlikely to be a substantial amount of academic referencing although you will need to refer to contract clauses.
Any academic references you use should be properly cited and referenced in accordance with the Harvard APA method.
Grading scheme:
Appraisal of relevant issues relating to the law of contract and any statutory law affecting the circumstances or potential issues which may arise from the scenario: 30%
Critical discussion of the obligations imposed by the contract in the circumstances: 30%
Assessment of the contract principles relating to the scenario and evaluate contractual and practical solutions to the issues: 30%
Presentation: professional report format with appropriate referencing: 10%
Grading Sheet:
All submissions must include a grading sheet. This is available on a link in Moodle and should be completed electronically prior to printing.
THIS SUBMISSION MUST BE UPLOADED TO MOODLE THROUGH THE DROP BOX DO NOT SUBMIT A PAPER COPY TO THE SCES OFFICE.