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Keep up to dateBy Christopher Filor2018-10-25T06:00:00
Failing to execute a formal contract risks severe exposure in the face of a defects claim, warns Christopher Filor
A recent Court of Appeal case that was a close call for the successful appellant, Arcadis, reinforces the strong message that in all cases where work starts before a final contract is signed, it is extremely unwise to proceed without a full and detailed agreement in the hope that the law will subsequently come to the rescue by implying appropriate protections such as caps on liability.
The decision, Arcadis Consulting (UK) Ltd vs Amec (BSC) Ltd [2018] EWCA Civ 2222, is a recent Court of Appeal decision following the Technology and Construction Court (TCC) hearing in October 2016. The case centred on the age-old problem of construction operations starting before the parties have concluded a definitive agreement on the terms of the contract.
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