In my previous post, I outlined the facts in Langstane Housing Association Ltd v Riverside Construction Aberdeen Ltd and considered the judge’s surprising decision on the meaning of “current” when deciding which version of the ACE conditions applied. In this post I look at the judge’s analysis of the net contribution clause in the ACE conditions and the potential application of the Unfair Contract Terms Act 1977 (UCTA). (more…)
The Berwin Leighton Paisner engineering, construction and procurement group give their views on current developments and share their practical experience.
Archive for April, 2009
John Hughes-D’Aeth, partner, Berwin Leighton Paisner:
The decision in Langstane Housing Association Ltd v Riverside Construction Aberdeen Ltd features some highly dubious judicial reasoning and illustrates the extent to which the courts are out of touch with the real world of contract negotiations for major construction projects. Although a Scottish case, its findings will resonate in England and Wales as well.
Melissa Moriarty, senior associate, Berwin Leighton Paisner:
Persistent late payment or non-payment of invoices may constitute a repudiatory breach of contract in some situations, but not in others. It is not always easy to spot the difference. In the current economic climate, this has become a common problem. Employers are reluctant to make payments to contractors who are on the brink of insolvency, especially as they are likely to be unsecured creditors in that insolvency. What can or should an employer do in these difficult circumstances? (more…)