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Glossary |
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Our website has been written in Plain English but because of the nature of our work there are certain terms that we really can't omit when trying to write in a simple, clear style. |
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For these words we have included this glossary which we hope will leave you enlightened and informed. |
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Adjudication
Rapid resolution, it is quick, simple, cheap, rough justice. We can make it work for you. The law requires the parties to many construction contracts to have the right to adjudicate. The parties are normally at loggerheads. A third party such as an architect is employed to decide who wins and loses. Adjudication takes about 28 days. It is one of the fastest methods of dispute resolution but you cannot recover lawyers fees.
Click here for a factsheet on Adjudication.
Arbitration
It is now thought of as slow, complex, expensive rough justice. We can make it work for you. Arbitration can take several years but otherwise it has similarities with adjudication. Normally you can recover lawyers fees.
Bonds
My word is my Bond! This is a written guarantee, usually for payment.
Cash-flow
Getting paid. It is that simple. You can now claim 8% above the base rate of the Bank of England on overdue accounts and a set "admin charge". Waiting to get paid has never been such good business. Talk to us about getting paid.
Click here for factsheets on Cash Flow.
Collateral Warranties
Collateral Warranties allow banks, funders, landlords and tenants to sue building contractors, architects, engineers and the like where they would not otherwise have a contract with them. The situation is different in Scotland and England.
Contracts
In a construction project there are all sorts of contracts. We can advise on them all such as building contracts, sub-contract agreements, professional team and consultant appointments.
Court action/Litigation
2 words for the act of going to court to have a dispute resolved. This a complex process. Choosing the quickest route could mean resolution within a year. Normally you can recover lawyers fees.
Click here for a factsheet on Court Action
Design & Build
With this method the contractor designs and builds the project whereas normally the architect designs and the contractor builds. Although it is popularly believed that design and build shifts all the risks from the employer to the contractor that is not correct. The client's brief and the contractor's proposals must be clearly tailored to each job to make sure that the major risks are covered.
Dispute Resolution
Everyone needs a helping hand when a problem arises. With our expertise in estimating costs, time-scale and outcome we can give the advice you really need.
Facility Letters
The name given to a loan agreement between a bank and a borrower. Banks and borrowers need to ensure that their rights and obligations under the loan agreements match their expectations.
Guarantees
I guarantee it! Make sure that your guarantee is in writing. Virtually any obligation can be guaranteed.
Insurance
Professional Indemnity Insurance and Buildings/Project Insurance can be critical. We can help you work out the difference and identify your needs.
Joint Ventures
Entering agreements with others for a common goal can be daunting for the uninformed. We can guide you through that process.
Mediation
The resolution system you have probably been waiting for. Both sides have to have a desire to co-operate for mediation to be a viable option. If they do, it is fast, cheap and wholly successful. Mediation is similar to adjudication and arbitration in that a third party is appointed to assist in the resolution process. The key difference being that the mediator does not impose a decision, he facilitates the parties reaching their own. The parties retain control so this can be the fastest or most convenient method of resolution. Lawyers fees are normally not recoverable.
Click here for a factsheet on Mediation.
Negotiation
The best way to resolve anything is through negotiation. We understand the perspective of others involved in the construction industry and will contribute effectively to the negotiation process. You can have us "up front" or "waiting in the wings".
Novations
Novations are part of design and build projects. They require particular skill to negotiate and draft effectively. We have that skill. Projects often start with an architect being employed by the developer. The decision is then made to go to design and build. The contract with the architect is then transferred by novation to the contractor.
Partnering Charters
Agreements designed to improve cooperation and communication between people in the construction industry.
Click here for a factsheet on Partnering Charters.
Procurement
If you are publicly funded you may need to comply with EC procurement legislation. We can help you through the Public Procurement Regulations for: Public Services Contracts; Public Supply Contracts and Public Works Contracts. If you are a local authority you will need to comply with the Local Government (Contracts) Act 1997.
Project Finance
Whether you are the lender or the borrower, you need to make sure that the loan agreement matches your needs and interests. We can make sure they align to your satisfaction.
Project Management
We can make sure your project gets off to the best possible start. We can manage the initial stages of getting the right team on board at the right time. Getting the right contracts in place early enough is the key. We are not project managers but we know how to manage the setting up of projects.
Click here for a factsheet on Project Management.
Project Team
We can help you put together the project team, architects, engineers, quantity surveyors, planning supervisors and project managers. We will negotiate their contracts and fees.
Risk Management
We are familiar with risk through experience. Developers want the contractor to take the risk on price, quality and timescale. Both parties need to understand the impact of that risk on price (there is no "free lunch") and also when the risk cannot be properly foreseen or managed.
Step in Rights
Everyone now wants them in case a project starts to fail. Lenders are the ones who really need them. A step in right allows a party who has a financial interest in the success of a project (such as a bank) to bypass the original borrower and pay the contractor himself, to allow the project to continue.
Warranties
Anyone who has an interest in the end use of the building may need them. Ask us, we will sort them out if required. A warranty obliges the contractor or consultants to pay out to a third party (a bank, landlord or tenant) if they make a mess of the project. Without these banks, landlords and tenants usually have no rights if the project goes horribly wrong.
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