Implied Terms in Construction Contracts Flashcards
(43 cards)
What are the two sources of implied terms in construction contracts?
Rule of law/statute and parties’ assumed intentions.
Name the two acts which contain statutory implied terms for construction contracts.
Housing Grants, Construction, and Regeneration Act 1996, and the Supply of Goods and Services Act 1982.
What are the two main approaches of common law for implying terms in construction contracts?
The Moorcock approach and the implication of usual terms.
Which case established the conditions to be satisfied for implying a term based on business efficacy?
BP Refinery v Shire of Hastings.
What is the contractor’s implied obligation regarding workmanship in a construction contract?
Proper skill and care, using materials without defects.
Which case established the contractor’s duty to warn of obvious design defects?
Plant Construction v Clive Adams.
What are some of the usual terms implied for employers in construction contracts?
Co-operation, role of certifier, supplying information, reasonable timing, and not preventing completion.
What is the main purpose of implying terms into construction contracts?
To ensure the contract functions efficiently and fairly.
How do entire agreement clauses potentially affect the implication of terms in construction contracts?
They may limit or exclude the possibility of implied terms, as seen in Axa Sun Life v Campbell & Martin.
What is the implied term regarding materials supplied by the contractor in a construction contract?
The materials should be fit for their purpose and of good quality.
What is the implied warranty concerning the fitness for purpose of completed works in a construction contract?
If the employer communicates the purpose of the work and relies on the contractor’s skill and judgment, the completed work must be fit for that purpose.
When might an implied term of fitness for purpose apply in a design and build construction contract?
When the contractor is hired to design and construct a project, unless the contract excludes this term.
What are the employer’s obligations regarding the role of the certifier in a construction contract?
The employer must ensure the certifier performs their duties properly if they do not follow the contract terms.
What is the employer’s responsibility regarding supplying information to the contractor in a construction contract?
The employer must provide necessary instructions, information, and plans at reasonable times to enable the contractor to complete the work.
What is the employer’s implied term concerning not preventing completion in a construction contract?
The employer must not hinder or prevent the contractor from completing their work as per the contract.
What are the two main approaches courts use to imply terms into construction contracts at common law?
(1) The Moorcock approach and (2) the implication of usual terms in certain types of contracts.
What are the key conditions to be satisfied for a term to be implied based on the business efficacy test?
The term must be reasonable, equitable, necessary for the contract to work efficiently, obvious to both parties that it should be included, and capable of clear expression without contradicting any express terms.
Which case established the conditions to be satisfied for the business efficacy test?
BP Refinery v Shire of Hastings.
What is the implied term concerning workmanship in a construction contract?
The contractor must perform the work with proper skill and care, using materials without defects, and this is a continuing obligation throughout the duration of the works.
What was established in the case of Plant Construction v Clive Adams.
The contractor’s duty to warn of obvious design defects established?
What is the employer’s implied term of co-operation in a construction contract?
The employer must work together with the contractor to help complete the project, including providing access to the site.
Which case clarified the employer’s duty of co-operation in a construction contract?
London Borough of Merton v Stanley Hugh Leach.
What is the employer’s responsibility concerning reasonable timing for providing instructions and information to the contractor in a construction contract?
The employer should give instructions and information based on the contractor’s needs and the progress of the work.
Which Act contains statutory implied terms in construction contracts relating to dispute resolution, stage payments, and payment mechanisms?
The Housing Grants, Construction, and Regeneration Act 1996.
