Construction Law Practice and Procedure
Expert-defined terms from the Graduate Certificate in Construction Law and Dispute Resolution course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Adjudication #
Adjudication
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Adjudication is a statutory dispute resolution process in construction law, desi… #
It is typically used for payment disputes and is mandatory in some jurisdictions. The adjudicator's decision is binding, but not final, and can be challenged in court or through arbitration.
Arbitration #
Arbitration
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Arbitration is a form of alternative dispute resolution (ADR) in which a neutral… #
It is often used in construction law to resolve disputes that are too complex or expensive for small claims court, but not serious enough to warrant a full trial. Arbitration is generally faster and less formal than court proceedings, but the decision is final and binding, and can only be appealed in limited circumstances.
Back #
to-Back Contracts
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Back #
to-back contracts are construction contracts that are linked together in such a way that the completion of one contract triggers the start of the next. This type of contract is often used in construction projects where there are multiple stages or phases of work, each with its own contractor. Back-to-back contracts ensure that the work flows smoothly from one stage to the next, and that each contractor is only responsible for their portion of the work.
Bonds #
Bonds
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Bonds are financial instruments used in construction projects to guarantee perfo… #
There are two main types of bonds: performance bonds and payment bonds. Performance bonds guarantee that the contractor will complete the work in accordance with the contract. Payment bonds guarantee that the contractor will pay their subcontractors, laborers, and material suppliers. Bonds are typically required for public construction projects, and are often used in private projects as well.
Building Information Modeling (BIM) #
Building Information Modeling (BIM)
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Building Information Modeling (BIM) is a digital representation of the physical… #
BIM is a 3D model that contains information about the building's materials, systems, and components, as well as data about the building's performance and sustainability. BIM is used in the design, construction, and operation of buildings and infrastructure projects to improve collaboration, reduce errors, and increase efficiency.
Construction Contracts Act #
Construction Contracts Act
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The Construction Contracts Act is a statute that governs construction contracts… #
The Act sets out the rights and obligations of the parties to a construction contract, and provides for adjudication as a means of resolving payment disputes. The Act is designed to promote fairness and transparency in construction contracts, and to protect the rights of subcontractors and suppliers.
Delay and Disruption Claims #
Delay and Disruption Claims
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Delay and disruption claims are claims made by a contractor or subcontractor for… #
Delay claims may be due to factors such as late delivery of materials, changes in the scope of work, or unforeseen site conditions. Disruption claims may be due to factors such as excessive noise or vibration, access restrictions, or changes in the sequence of work. Delay and disruption claims are often complex and require careful analysis and documentation.
Design and Build #
Design and Build
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Design and build is a project delivery method in which the contractor is respons… #
This method is often used in construction projects where time or cost is a critical factor, as it allows for faster project delivery and potentially lower costs. Design and build also promotes greater collaboration between the design and construction teams, which can lead to improved project outcomes.
Dispute Resolution #
Dispute Resolution
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Dispute resolution is the process of resolving disputes between parties to a con… #
Dispute resolution may involve negotiation, mediation, arbitration, or litigation. The choice of dispute resolution method depends on the nature and complexity of the dispute, as well as the preferences of the parties. Dispute resolution is an important aspect of construction law, as construction projects often involve multiple parties with competing interests.
Lien #
Lien
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Litigation #
Litigation
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Litigation is the process of resolving disputes through the court system #
Litigation involves filing a complaint, conducting discovery, presenting evidence, and arguing the case before a judge or jury. Litigation is often used as a last resort in construction disputes, as it can be expensive, time-consuming, and unpredictable. However, litigation may be necessary in cases where the parties are unable to reach a settlement, or where the dispute involves complex legal issues.
Mediation #
Mediation
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Mediation is a form of alternative dispute resolution (ADR) in which a neutral t… #
The mediator does not make decisions or impose solutions, but rather helps the parties to reach their own agreement. Mediation is often used in construction disputes as a less formal and less expensive alternative to litigation.
Negotiation #
Negotiation
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Negotiation is the process of communicating and bargaining with another party to… #
Negotiation is often the first step in resolving disputes, and is an important skill in construction law practice. Effective negotiation requires careful preparation, clear communication, and a willingness to compromise.
Performance Bond #
Performance Bond
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A performance bond is a financial instrument used in construction projects to gu… #
The bond is issued by a surety company, and provides a guarantee that the contractor will complete the work in accordance with the contract. If the contractor fails to perform, the surety company is obligated to complete the work or pay damages to the owner. Performance bonds are typically required for public construction projects, and are often used in private projects as well.
Payment Bond #
Payment Bond
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A payment bond is a financial instrument used in construction projects to guaran… #
The bond is issued by a surety company, and provides a guarantee that the contractor will pay their subcontractors, laborers, and material suppliers. If the contractor fails to pay, the surety company is obligated to pay the unpaid parties. Payment bonds are typically required for public construction projects, and are often used in private projects as well.
Payment Dispute #
Payment Dispute
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A payment dispute is a disagreement between the parties to a construction contra… #
Payment disputes may arise due to issues such as delayed payments, disputed change orders, or defective work. Payment disputes are often resolved through adjudication, mediation, or arbitration.
Prime Contract #
Prime Contract
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A prime contract is the contract between the owner and the prime contractor for… #
The prime contract sets out the scope of work, the price, and the terms and conditions of the project. The prime contractor is responsible for managing the project and coordinating the work of subcontractors and suppliers.
Professional Negligence #
Professional Negligence
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Professional negligence is a claim made against a professional, such as an archi… #
In construction, professional negligence claims may arise due to issues