Procurement Law and Practice
Expert-defined terms from the Professional Certificate in Construction Legal Compliance (United Kingdom) course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
**Adjudication** #
**Adjudication**
Adjudication is a statutory dispute resolution process in the United Kingdom, in… #
It is a mandatory process for construction contracts, and the adjudicator's decision is binding until a subsequent court order or arbitration award.
**Adjudicator** #
**Adjudicator**
An adjudicator is an impartial third party appointed to resolve disputes in cons… #
The adjudicator's role is to provide a swift and binding decision on the dispute, which remains in force until challenged in court or arbitration.
**Arbitration** #
**Arbitration**
Arbitration is a dispute resolution process in which an impartial third party, t… #
Arbitration is often used in construction contracts as an alternative to litigation, providing a more flexible and confidential process.
**Arbitrator** #
**Arbitrator**
An arbitrator is an impartial third party appointed to resolve disputes through… #
The arbitrator's decision, called an award, is legally binding and enforceable.
**Collateral Warranty** #
**Collateral Warranty**
A collateral warranty is a contract between a party involved in a construction p… #
The warranty provides assurance that the work carried out complies with contractual obligations, and is often used to protect the interests of funders, tenants, and purchasers.
**Conditions of Contract** #
**Conditions of Contract**
Conditions of contract refer to the standard terms and conditions that govern th… #
These conditions typically cover issues such as payment, variation, termination, liability, and dispute resolution.
**Construction Contract** #
**Construction Contract**
A construction contract is a legally binding agreement between a contractor and… #
Construction contracts typically cover issues such as scope of work, payment, variation, termination, liability, and dispute resolution.
**Consultant** #
**Consultant**
A consultant is a professional who provides expert advice and services to a cons… #
Consultants may include architects, engineers, surveyors, and project managers.
**Contractor** #
**Contractor**
A contractor is a person or organization that enters into a construction contrac… #
A contractor is a person or organization that enters into a construction contract with a client to carry out construction work.
**Delay and Disruption** #
**Delay and Disruption**
Delay and disruption refer to events that cause a project to be delayed or disru… #
Delay and disruption can be caused by a variety of factors, including weather, labor disputes, material shortages, and design changes.
**Dispute Resolution** #
**Dispute Resolution**
Dispute resolution is the process of resolving disputes between parties in a con… #
Dispute resolution methods include negotiation, mediation, adjudication, arbitration, and litigation.
**Funders** #
**Funders**
Funders are parties who provide financial resources for a construction project #
Funders may include banks, building societies, and other financial institutions.
**Joint Venture** #
**Joint Venture**
A joint venture is a partnership between two or more parties who come together t… #
Joint ventures are typically used when the project is too large or complex for a single party to undertake alone.
**Letter of Intent** #
**Letter of Intent**
A letter of intent is a document that outlines the terms and conditions under wh… #
A letter of intent is not legally binding, but it can create legal obligations if it is not clearly stated that it is not intended to be a contract.
**Liability** #
**Liability**
Liability refers to the legal responsibility of a party for their actions or omi… #
In construction contracts, liability may be limited or excluded through contractual terms and conditions.
**Litigation** #
**Litigation**
Litigation is the process of resolving disputes through the courts #
Litigation is often seen as a last resort in construction disputes due to its high cost and time-consuming nature.
**Mediation** #
**Mediation**
Mediation is a dispute resolution process in which an impartial third party, the… #
Mediation is a voluntary process, and the mediator's role is to facilitate communication and negotiation between the parties.
**Negotiation** #
**Negotiation**
Negotiation is the process of resolving disputes through direct communication an… #
Negotiation is often the first step in dispute resolution, and it can be a quick and cost-effective way of resolving disputes.
**Payment** #
**Payment**
Payment refers to the amount of money paid to a contractor for carrying out cons… #
Payment terms and conditions are typically set out in the construction contract.
**Purchasers** #
**Purchasers**
Purchasers are parties who buy a completed construction project #
Purchasers may require collateral warranties to ensure that the work carried out complies with contractual obligations.
**Scope of Work** #
**Scope of Work**
The scope of work refers to the work that is to be carried out under a construct… #
The scope of work is typically set out in the construction contract, and it may include detailed specifications, drawings, and schedules.
**Standard Form of Contract** #
**Standard Form of Contract**
A standard form of contract is a pre #
prepared contract that is widely used in the construction industry. Standard forms of contract are often produced by professional bodies or industry organizations, and they provide a consistent and fair framework for construction contracts.
**Termination** #
**Termination**
Termination refers to the ending of a construction contract before the work has… #
Termination may be carried out by either party, and it may be due to a breach of contract, a failure to perform, or a mutual agreement.
**Variation** #
**Variation**
Variation refers to any change to the scope of work or the conditions of contrac… #
Variations may be carried out for a variety of reasons, including changes in design, unforeseen circumstances, or errors.
**Warranty** #
**Warranty**
A warranty is a contractual promise that the work carried out will comply with a… #
Warranties may be given by contractors, consultants, or manufacturers, and they may be express or implied.