Construction Law and Contracts Capstone Project
Expert-defined terms from the Undergraduate Certificate in Construction Law and Contracts course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
**Adjudication** #
**Adjudication**
In construction law, adjudication is a process used to resolve disputes between… #
It is a quick and cost-effective method of dispute resolution, which is binding on the parties and can be enforced through the courts. The adjudicator is a neutral third party who is appointed by the parties or by an adjudication nominating body. The adjudicator will consider the evidence presented by both parties and make a decision, which is usually provided within a short timeframe.
**Building Information Modelling (BIM)** #
**Building Information Modelling (BIM)**
Building Information Modelling (BIM) is a digital tool used in the construction… #
BIM allows for the creation of a 3D model of the building, which can be used to plan, design, construct and manage the building throughout its lifecycle. BIM can also be used to simulate different scenarios, such as how the building will look in different lighting conditions or how it will perform in different weather conditions.
**Collateral Warranty** #
**Collateral Warranty**
A collateral warranty is a contract between two parties, where one party (the wa… #
Collateral warranties are often used in construction projects to provide a level of protection to parties who are not directly involved in the construction contract, such as funders, tenants and purchasers.
**Construction Contract** #
**Construction Contract**
A construction contract is a legally binding agreement between a contractor and… #
It sets out the terms and conditions of the construction project, including the scope of work, the price, the payment schedule, the completion date, and any warranties or guarantees. Construction contracts can be either standard form contracts, such as those produced by industry bodies, or bespoke contracts drafted specifically for a particular project.
**Delay and Disruption** #
**Delay and Disruption**
Delay and disruption are common issues in construction projects, and can result… #
Delay refers to a delay in the completion of the project, while disruption refers to any event that impacts on the normal progress of the project, such as changes to the design or unforeseen site conditions. Delay and disruption can be caused by a variety of factors, including adverse weather, late delivery of materials, and changes to the scope of work.
**Design and Build** #
**Design and Build**
Design and build is a type of construction contract where the contractor is resp… #
This type of contract is often used for complex or bespoke projects, as it allows for a single point of responsibility for the design and construction of the project. The contractor will work closely with the client to develop a design that meets their requirements, and will then construct the project based on that design.
**Dispute Resolution** #
**Dispute Resolution**
Dispute resolution is the process of resolving disputes between parties involved… #
There are several methods of dispute resolution available in construction law, including adjudication, arbitration, and litigation. The most appropriate method of dispute resolution will depend on the nature and complexity of the dispute, as well as the preferences of the parties involved.
**FIDIC** #
**FIDIC**
FIDIC (the International Federation of Consulting Engineers) is an organization… #
FIDIC contracts are widely used in international construction projects, and are known for their balanced and fair approach to risk allocation. There are several different FIDIC contracts available, each designed for use in different types of construction projects.
**Joint Venture** #
**Joint Venture**
A joint venture is a business arrangement between two or more parties who come t… #
In the construction industry, joint ventures are often used for large or complex projects, where the parties combine their resources and expertise to deliver the project. Joint ventures can be structured in different ways, depending on the needs and objectives of the parties involved.
**Latent Defects** #
**Latent Defects**
Latent defects are defects in a building that are not immediately apparent, and… #
Latent defects can be caused by a variety of factors, including poor workmanship, the use of substandard materials, or design errors. Latent defects can result in significant costs to remedy, and may give rise to legal claims between the parties involved in the construction project.
**Liquidated Damages** #
**Liquidated Damages**
Liquidated damages are a pre #
agreed sum of money that is payable by a contractor to a client in the event of a delay in the completion of a construction project. Liquidated damages are designed to compensate the client for any losses they may suffer as a result of the delay, and are usually set out in the construction contract. The amount of liquidated damages will depend on the nature and complexity of the project, and will be based on a reasonable estimate of the potential losses that may be suffered by the client.
**Negligence** #
**Negligence**
Negligence is a legal concept that refers to a failure to take reasonable care,… #
In the construction industry, negligence can occur in a variety of ways, including through the design, construction, or maintenance of a building. If a party is found to be negligent, they may be liable to pay damages to the person who has suffered harm or damage as a result of their negligence.
**Novation** #
**Novation**
Novation is a process where a new party is substituted for an original party in… #
This is usually done when the original party is unable to fulfil their obligations under the contract, and a new party is brought in to take their place. Novation is a complex legal process, and requires the agreement of all parties involved in the contract.
**Payment** #
**Payment**
Payment is a key aspect of construction contracts, and sets out the terms and co… #
Payment can be made in a variety of ways, including progress payments, milestone payments, or lump sum payments. The payment terms will be set out in the construction contract, and will usually include provisions for the timing and amount of payments, as well as any interest or penalties that may be payable in the event of late payment.
**Surety Bond** #
**Surety Bond**
A surety bond is a type of insurance that guarantees the performance of a contra… #
Surety bonds are often required by clients as a condition of entering into a construction contract, and provide a level of protection against the risk of the contractor failing to complete the project or failing to meet their obligations under the contract. Surety bonds are typically provided by a surety company, and require the contractor to provide security or collateral as a condition of the bond.
**Termination** #
**Termination**
Termination is the process of bringing a construction contract to an end before… #
Termination can occur for a variety of reasons, including the failure of a party to perform their obligations under the contract, a material breach of the contract, or the insolvency of a party. Termination is a complex legal process, and requires the agreement of all parties involved in the contract.
**Variation** #
**Variation**
A variation is a change to the scope of work set out in a construction contract #
Variations can be either additions or omissions to the scope of work, and are usually requested by the client or arise as a result of unforeseen circumstances on the project. Variations are a common feature of construction contracts, and will usually be subject to a formal variation procedure set out in the contract.
**Warranty** #
**Warranty**
A warranty is a guarantee or promise given by a contractor or supplier in relati… #
Warranties can be either express or implied, and are designed to provide a level of protection to the client in the event of defects or issues with the work or materials