REALWorld Law

Construction

Obligatory requirements

Are any terms and conditions imposed or implied by law or mandatory in contracts for the design or carrying out of building works?

UK - England and Wales UK - England and Wales

UK - England and Wales

Certain provisions are implied into construction contracts by case law and statute.

The Housing Grants, Construction and Regeneration Act 1996 gives a party to a construction contract the right to refer a dispute to adjudication. In addition, every contract must include an adequate mechanism for determining what payments become due, when they become due and a final date for payment. A party is also entitled to payment by instalments, stage payments or other periodic payment. Finally, a party also has the right to suspend performance for non-payment. If the contract does not make adequate provision, the provisions of a statutory scheme will automatically apply to it.

As far as the works themselves are concerned, the contractor must do the work with all proper skill and care. Breach of this duty includes the use of materials containing patent defects. There is also an implied warranty that the contractor will use materials that are reasonably fit for the purpose for which they are to be used (whether or not that is a purpose for which the materials are commonly supplied) and of good quality. If a contract is silent in relation to liability for design, there is an implied term that the services will be carried out with reasonable skill and care. The burden of proof falls on the party claiming that the supplier of the service (design and build contractor, design subcontractor or consultant) has failed to use reasonable skill and care. These terms will be implied only if the contract is silent on the issues; express terms are required to displace the implication of these terms.