Question 1:

a. Insurance

Clauses 6.1 and 6.2 of the contracts set out the conditions for Contractor's Compensation to
compensate the client for the physical injuries or disability of any employee and for any harm to
properties arising from, or in the process of, the execution of the job. It happens only in
situations of incompetence on the part of the contractor. If liability occurs as a result of
wrongdoing on the part of the company or the employer's employees or any other contractor, the
policy of the client does not compensate this case. This is recommended that the company adopts
its own strategy regarding this type of responsibility outside the contract.

Builders liability protection, also known as design course (COC) policy, or occasionally all-cost
protection design, is compensation cover for houses and other facilities when under renovation.
In fact, insurance plans may typically have provisions to protect the following property types:

 Construction machinery
 Stiftungen
 Temporary frameworks for example scaffolding
 Paving, cladding, outdoor fittings
 The builders installed lawns, trees and plants

Insurance providers generally cover types of construction projects that are most common,
including:

 Fresh Residential housing

 Residential design
 Model homes and model contents of homes
 Building commercial properties
Public Liability Insurance is a provision to protect the insurer (contractor and employer) against
the civil duty to pay expenses and litigation costs / expenditures in the case of an accident: •
injuries to any person;

• damage to property;
• obstruction or interference with any right of way light, air, water or relief.
• Compulsory liability insurance is a condition in the contract for negligence on the part of
the client and is required by the provider to compensate his own negligence.

b. Part Wall Act

The word "part wall" reads as follows:

 A wall that sits on the property of two (or more) individuals and is part of a house-this
wall may be part of a single structure, or various buildings belonging to specific people.
 A wall stands on two owners' property but not part of a house, such as a garden wall
(although not having timber fences)
 A wall located on the property of one individual but used by two (or more) owners of
different properties.

Party wall Legalizations

The Party Wall Act applies to most part of the work done on party walls. If this happens, it
implies that you would need to inform your neighbor(s) of the upcoming works and, if they do
not agree to the job, you may need to designate a surveyor to plan a Party Wall Grant.

However, if work on the party wall is so small that notice service is not required under the Act
(e.g. straightforward repairs, such as replastering, or cutting into the party wall to add or replace
recessed electrical wiring and sockets) you can use a simple Party Wall Agreement to record the
work to be done.

Resolving dispute

Through taking any precautions before you launch your project, you may prevent conflicts
entirely. Communicating with the neighbors, recognizing the property 's legal owners and
specifically defining the processes you want to hopefully stop a conflict.

 Address the intentions with the resident next door

 Identify the lawful owner of the land
 Be clear on the works you plan

RICS guideline

The RICS Boundaries and Working Group on Party Walls produces professional guidance
regarding party walls. The latest provides advice to surveyors who accept instructions in
circumstances that may be relevant to the Party Wall Act. The sixth version takes into account
regulations, case law, and existing advice from the HM Department.

The Wall Party Act 1996

They shall refer to England and Wales and shall come into effect on 1 July 1997. It provides a
framework for the prevention and resolution of disputes regarding party walls, boundary walls
and excavations near adjacent buildings.

Case Law

“The Court clarified that the provisions contained in the 1996 Party Walls Act allowing
compensation for loss and damage (s7(2) PWA 1996) are subject to the usual common law
principles for assessing damage to land torture.”
Solution

On this point, the Court found C and held that the principles of common law that applied to the
assessment of damages for land torts were applicable.

“There was no authority regarding the proper construction of the PWA 1996 s7 on damages. The
relevant wording of the s10 award did not cover the situation that had arisen that required
complete demolition and reconstruction, and in any event did not answer the question as to the
basis on which any payment should be made instead of making good works. Consequently, D
was not entitled to the statements it sought as, when assessing compensation for any loss or
damage payable under s7(2) of the PWA 1996, common law principles were applicable to the
assessment of damages for land torture. The enforcement of such rules needed restitution to be
such that the opposite plaintiff should have been held in the same situation as if the injury to his
property had not existed, but had still been fair as between the complainant and the defendant;
that what was acceptable was extremely factually relevant and that there was no law demanding
liability on one side or the other. The principles applicable in tort were similar to those
applicable in contract. In particular, the principle laid down by Ruxley Electronics &
Construction Ltd v Forsyth [1996] AC 344, that where remedial expenditure was out of all
proportion to the benefit to be obtained, the appropriate measure of the damage was the decrease
in value, also held good in tort.”

Question 2
a. Defects in construction

A construction fault may be defined as a part in the building being built by the builder or planned
by experts not according to the standard, schedule, failure to comply with the authority's building
code. Construction flaws can also be defined as making the project unsafe, fragile and allowing
the construction customer to experience damage or death. It can arise during the construction
process, and require the project to be expensively reworked, the job not completed in time, which
affect the overall performance of the building. EOLBREAK According to the study by the
University of Florida, building defects can be different types, and influenced by many factors in
the construction industry. Can include the may construction defect types and causes.
  Improper design Poor workmanship leading to poor quality finishing
 Improper means of installation, or methods
 The materials are of poor or improper quality
 Material defects or poor performance
 The building site requires or inadequate protection from weather or environmental
factors.
 Subsistence to soil, movement and settlement

Depending on a few research studies, the impact of the construction defect that raise overall
construction costs, and the final project volume and a survey conducted by the United Kingdom
Building Research Establishment showed that 35 percent of the defects were due to faulty
construction.

Alternative Dispute Resolution

Alternative Conflict Resolution (ADR) or Alternative Dispute Resolution (EDR) usually

represents a wide range of dispute settlement procedures and strategies that act as a framework
for non-conflict parties to enter into a non-conflict agreement: a common term for the process by
which the entities may resolve conflicts with the help of a third party. Nevertheless, ADR is now
being used progressively as an instrument to help resolve conflicts within the legal system itself.

Importance

Alternate Dispute Resolution (ADR) gives the opposing parties the ability to work on contested
problems with the help of a neutral third party. It's usually quicker and easier than going to court.

When used properly, ADR can

• Save a lot of money, including payments for attorneys and consultants, and waste job
time.
• put the people in charge (instead of their attorneys or the court) by allowing them the
chance to share their side of the story and to have a say in the final ruling.
• Work on issues that are important to the parties in question rather than simply their legal
rights and responsibilities • encourage the people involved to come up with innovative
and imaginative solutions by discussing what each of them needs to do and why.
 • Preserving partnerships and making us work together instead of having one winner and
one loser.
• achieve positive outcomes, such as resolution rates of up to 85 per cent.
• Raising court attendance discomfort, time and expense.

Keep private conflicts confidential-only those who are invited to attend the ADR session, as
opposed to the court where the hearings are generally open to the public record and others,
including the media, can participate.

Advantages & Disadvantages of ADR

Advantages

Advantages include the fact that reaching a negotiated settlement usually requires much less time
than when the matter is to be brought to court. This usually costs considerably less energy (but
not always), too. In fact , in the case of arbitration , the parties have much greater discretion in
choosing which rules to adhere to their disagreement. EOLBREAK In addition, the parties may
have their conflict arbitrated or mediated by an official who is an authority in the area concerned.
In an ordinary case that contains complicated and technological problems that are not known to
those in the related industry, a great deal of time has to be spent informing the judge and the
jurors, only so that they can make an educated decision. This enormous time commitment also
makes a lot of money to be invested.

Disadvantages

There are several risks, as well. Arbitrators usually can only resolve property - related disputes.
We can't issue instructions this compel one citizen to do something or stop from doing anything
(also known as injunctions). We can not change the title, however, to land. In addition, the ADR
could not include some of the clauses designed to safeguard the sides. These may include the
stringent confidentiality requirements implemented under U.S. courts which require the
collection of information from the opposing side in a situation to be fairly straightforward.
EOLBREAK There is always a very restricted chance for arbitrator 's decision to be challenged
judicially. While a large arbitration company may have some sort of internal appeal mechanism
if it so desires, the decision is usually final and binding and can only be checked by a court of
specific circumstances. Typically that is the case where the initial arbitration agreement is
declared invalid. Since all parties will consent to arbitration on a mediated basis, whether one
side accepts by deceit or intimidation, it will not be enforced.

Case Law

RICS also built modern arbitration facilities for design and infrastructure conflicts in the Middle
East with the goal of offering unrivaled client satisfaction that satisfies the parties' needs of
consistency, reliability and consumer interface in arbitration.

“Under the 1996 Arbitration Act, the court's position has been limited and the presence of the
arbitrator has expanded in ways such as Arbitration to serve the focal function of Alternative
Dispute Resolution; to minimize the workload of the statutory traditional tribunals. And it means
that little change is being made within the English legal framework.”

“Moreover, the civil proceedings committee of the Law Society and the ADR Committee
published a study released in April 2005 noticed that the dereddened ratio reported by LJ Dyson
shows that Alternative Conflict Settlement is making progress in society in settling legal
conflicts on the basis of Halsey v Milton Keynes NHS Trust.”

"All legal profession now have to consider routinely with their clients whether their disputes are
suitable for ADR"

“A review of cases involving mediation as an alternative dispute resolution underlines that there
has been a success rate of 83.5 per cent between 1993 and 2005, suggesting that mediation can
be accounted for as a means of successfully resolving disputes. Hence bringing to light the ADR
functions to be recognized by the court as a way to settle conflicts and by the public that uses it.”

“This is clear that in recent years, ADR has been increasingly introduced, allowing strides in
addressing problems affecting persons of the state and the institutions through which the society
is developing. Gary Slapper and David Kelly say that the Burchell v Bullard 2005 decision
insinuates that ADR is a safer method to settle legal cases than the courts. " A small dispute over
buildings is the kind of dispute par excellence that, as the recorder found, lends itself to ADR."

Question 3
A. Contractor’s interim application
Building contracts shall include the dates of the payment system specified by the Building Act.
These deadlines include: deadline days, deadlines for issuing payment certificates and paying
fewer fees, as well as actual days for payment. The implications of breaching these deadlines can
be severe, with the courts taking a firm line in favor of the overriding goal of maintaining cash
flow through the building supply chain.

The Temporary Assessment Date is used in all JCT 2016 contracts, subcontracts and sub-
contracts. The goal of the JCT is to provide a fairer payment structure by synchronizing how the
payment process operates in all thirds of their contracts. The move was certainly inspired by the
Government's Equal Payment Strategy, which aims to reach uniform business wage conditions
by 2025, and the JCT's effort to establish itself as a public sector contract of choice.

The Intermediate Valuation Date is the closest business day of the month to the date specified. It
ensures that the payout period is expected to hop around based on the day it happens and has to
be closely tracked by both the supplier and the client departments. Consequently, the parties to
the JCT deal would have to recalculate all future dates in the payout period for the month in
order to ensure that it is related to the amended due date.

Example
B. Liquidated damages

Liquidated damages are not fines, they are pre - determined losses that are set at the time the
contract is concluded, based on an estimate of the actual costs that the customer is liable to suffer
if the contractor fails to meet the delivery date. This could include: rent on temporary housing,
costs of relocation, extra costs of maintenance, etc. They are usually set as a defined daily or
weekly number, though more complex calculations that occur where the works are phased out,
where partial ownership might occur, and so on. It is important that the computation method is
reported accurately and formallyLiquidated damages are not fines, they are pre - determined
losses that are set at the time the contract is concluded, based on an estimate of the actual costs
that the customer is liable to suffer if the contractor fails to meet the delivery date. This could
include: rent on temporary housing, costs of relocation, extra costs of maintenance, etc. They are
usually set as a defined daily or weekly number, though more complex calculations that occur
where the works are phased out, where partial ownership might occur, and so on. It is important
that the computation method is reported accurately and formally.

Since liquidated claims are not a tax, they must have been based on a true assessment of the costs
at the time they were sustained. If they are not valid, they can be considered as a liability by the
courts and are thus not enforceable (see Dunlop Pneumatic Tyre Co Ltd v New Garage and
Motor Co Ltd), but that is impossible because the courts are quite hesitant to engage with the
mutual arrangements voluntarily concluded between two private parties with equal status.

Calculations can include, among other items:

 Loss of the income

 Loss of the rent
 Storage costs.
 Fees
 Finance costs.
 Rental costs.

Extension of time

When the job is impacted by an incident that changes the date of completion that is not the
contractor's responsibility, it may reflect a' significant event' for which the client may be awarded
an extension of time ( i.e. the period of contract delivery is adjusted); This could have the effect
of relieving the business of liquidated damages from lawsuits.

Case Law

“In Jawaby Property Investment Ltd v Interiors Group Ltd and another (2016), the claimant
employer sought declaratory relief against the defendant contractor. The proceedings were issued
in the context of the operation of an escrow agreement but the key issue of whether the
contractor had made a valid interim payment application is one that has wider application in
construction disputes.”

Solution

In agreeing that the email dated 7 January 2016 did not lead to a legitimate demand for payment
Carr J made the following comments:

The valuation submitted on January 7 did not adopt the previous valuation trend and was
significantly different.

The valuation was defined critically as a "initial assessment" Therefore it could not be
reasonably viewed as an estimate of what was owed by the Contractor.

An inconsistency in the summary sheet exacerbated the assumption of provisionality (which

defined the aggregate number as being for Valuation 6 not 7. The reference to the document was
also called "Copy of Section Split Valuation (007) to 05 January." The summary sheet claimed
the job was priced at 7 January. Whatever date was right, a calculation of the job prior to the due
date was not included in the assessment as was the case for previous valuations.

The appraisal was, in fact, just an approximate evaluation. It should not have been known by the
fair receiver of the appraisal as "unambiguously reminding it that this was a temporary demand"
and there was no appropriate path of dealing from which the contractor might fall back.

References

Alshawi, M. and Hope, A., 1989. Expert systems and contractual disputes: extension of time
under JCT 80. Construction Management and Economics, 7(1), pp.65-74.
Pain, J. and Bennett, J., 1988. JCT With Contractor's Design form of contract: a study in
use. Construction Management and Economics, 6(4), pp.307-337.

Rylski, M., 2018. Legal Regulation of the Obligation of Employers to Provide Social Support to
Employees in the Polish Legal System. Employee Responsibilities and Rights Journal, 30(4),
pp.279-296.

Brett, J., 2015. Attitudinal Structuring, Alternative Dispute Resolution, and Negotiation
Strategy. Negotiation Journal, 31(4), pp.359-360.