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View the related checklists about PFI

Contractor steps to take if sub-contractor becomes insolvent—checklist

Contractor steps to take if sub-contractor becomes insolvent—checklist This Checklist sets out a number of practical steps that a main contractor should consider taking where a sub-contractor it has engaged becomes insolvent during a construction project. This Checklist assumes that the contractor has entered into a written sub-contract with the sub-contractor for construction works which are not yet complete. It assumes that it is not a PFI project. The actions to be taken in any specific situation will of course depend on the terms of the contract(s) between the parties and the status of the works at the time of the sub-contractor’s insolvency, but this Checklist is intended to provide a starting point for the contractor if such circumstances occur. For guidance on how to spot potential problems with solvency and how to protect the contractor’s position at the outset of a project, see Practice Note: Construction insolvency—how to spot problems and how to protect yourself—contractors. In the event that a sub-contractor has become insolvent, the contractor needs to be...

Coronavirus (COVID-19) and contractual obligations—checklist

Coronavirus (COVID-19) and contractual obligations—checklist This Checklist sets out some of the key issues to consider when a party is unable to comply with its contractual obligations due to the impact of coronavirus (COVID-19)—eg to proceed with/complete works under a construction contract, or supply goods or services under a supply contract (or series of supply contracts). Commercial considerations, shared objectives and collaboration will also play a key role in ensuring that parties are able to mitigate the impact of coronavirus on their staff and business, in challenging times and where neither party is at fault. Force majeure Force majeure is a term used to describe an event that is beyond the control of the parties, and which prevents them from fulfilling their contractual obligations: Triggering force majeure • check to see whether your contract contains force majeure provisions or provisions with a similar effect. Note that: ◦ the term ‘force majeure’ may not necessarily be used in the contract, eg the FIDIC 2017 standard form construction contracts use the term...

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PFI structure—diagram

PFI

View the related practice notes about PFI

Performance security in construction

Performance security in construction This Practice Note examines the different types of performance security documents which are used on construction projects in the UK. It provides brief commentary on parent company guarantees, bonds (including performance bonds, advance payment bonds and retention bonds), collateral warranties, third-party rights, direct agreements and letters of reliance. It also considers provisions within construction contracts that provide performance security, such as payment security methods and performance guarantees. Parent company guarantees Parent company guarantees (PCGs) are often provided to an employer by a main contractor’s holding or parent company. In essence, if the main contractor defaults in its obligations under the construction contract, then the employer can seek recourse against the holding/parent company either financially or potentially in terms of performance if the parent company has sufficient resources to step in and continue the carrying out of the project in the main contractor’s stead. Theoretically, this recourse could also be used in the event that the main contractor is insolvent, although employers should bear in mind that...

Construction Glossary—P

Construction Glossary—P A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Parent company guarantee (PCG) A contract between a parent company and a beneficiary, by which the parent guarantees its subsidiary's performance under a separate contract between the subsidiary and the beneficiary (eg a building contract). In the event of the subsidiary failing to perform its obligations under its contract with the beneficiary, the parent company may be required to perform its obligations in its place or reimburse the beneficiary for losses suffered as a result of the subsidiary’s failure to perform. See subtopic: Parent company guarantees in construction projects. Partial possession This is where the employer takes possession of part(s) of the works before practical completion of the whole project, for example to rent a completed floor to a tenant while works continue on other floors. In such a case, practical completion is deemed to have occurred for that...

View the related precedents about PFI

Risk audit

Risk audit 1 General Date of audit [Insert date of audit] Person completing audit [State name and position of person completing audit] 2 External risks Complete the following table with external risk factors that may affect the business. Any external risks you identify should be added to the risk register. Category of external risk Specific risk(s) identified Date added to risk register Sector-specific risks [Insert risk, eg downturn in housing market] [Insert date] Domestic political risks [Insert risk, eg government policy to reduce spending on public sector housing, reduction in skilled migrant labour] [Insert date] International political risks [Insert risk, eg expected reduction in foreign property purchasers] [Insert date] Currency risks [Insert risk, eg reduction in value of sterling affecting cost of imported materials] [Insert date] Other financial risks [Insert risk, eg anticipated increase in interest rates depressing demand for new building] [Insert date] [Insert other external risk category that may be relevant to your business, eg funding] [Insert risk, eg reduction/cessation of PFI initiatives]...

View the related q&as about PFI

Does the HGCRA 1996 apply to onshore and offshore operation and maintenance agreements?

Does the HGCRA 1996 apply to onshore and offshore operation and maintenance agreements? The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) only applies to a ‘construction contract’, namely a contract that satisfies all of the requirements set out in HGCRA 1996, ss 104 to 106 (and, for contracts concluded prior to 1 October 2011, HGCRA 1996, s 107). A construction contract is an agreement to carry out ‘construction operations’ or arrange/supply labour for such operations (HGCRA 1996, s 104). The activities which constitute construction operations for the purposes of the act are set out in HGCRA 1996, s 105(1), albeit subject to HGCRA 1996, s 105(2) which lists excluded works that do not amount to construction operations. Where a contract involves both construction operations and non-construction operations (sometimes referred to as a hybrid contract) the HGCRA 1996 will still apply but only to those parts of the contract which are concerned with construction operations. Construction operations If the works in question do not fall within the...

Is there a time limit to dispose of land following Secretary of State consent to dispose of land under Schedule 1 to the Academies Act 2010 and is there any requirement to inform the Secretary of State or submit a new application if the proposed transferee/use of the land (as detailed in the original application) changes?

Is there a time limit to dispose of land following Secretary of State consent to dispose of land under Schedule 1 to the Academies Act 2010 and is there any requirement to inform the Secretary of State or submit a new application if the proposed transferee/use of the land (as detailed in the original application) changes? We are not aware of any authority on this specific point. It appears that there is nothing within the Schedule 1 of Academies Act 2010 (AcA 2010), or the Academies (Land Transfer Schemes) Regulations 2012, SI 2012/1829 which states that there is a specified time limit in which a disposal must take place following the consent of the Secretary of State. AcA 2010, Sch 1 (as substituted) provides powers for the Secretary of State to provide land for academies and to control their use and disposal of it. The Academies (Land Transfer Schemes) Regulations 2012, SI 2012/1829 contains provisions relating to the making of a transfer scheme in relation to...

View the related News about PFI

PI & Clinical Negligence weekly highlights—9 June 2022

This week’s edition of PI & Clinical Negligence weekly highlights includes a Practice Direction update revoking proposed amendments to CPR PD 51ZB (The Damages Claim Pilot) which required legally represented defendants to use the Damages Claims Portal. We also have details of a clinical negligence claim regarding a deep vein thrombosis which was dismissed by the High Court. We also have our usual round-up of other key cases and news and New Law Journal articles of interest.

Banking and Finance weekly highlights—3 March 2022

This week's edition of Banking and Finance weekly highlights includes: (1) a new Financial sanctions collection, legal updates and news analysis on the Ukraine crisis and its implications for Banking and Finance; (2) new draft guidance on arbitration of commercial rents affected by coronavirus; and (3) AFME responds to HM Treasury’s consultation on regulatory framework for CCPs and CSDs.