Construction
Lawyers

Our construction lawyers can advise on all stages of a wide variety of commercial, retail and residential projects and their associated legal and commercial risks.

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Construction Law

Our expert construction lawyers have a wealth of experience in advising on a wide array of legal issues on construction projects. We are supported by one of the largest property law teams in the Surrey, Hampshire and Berkshire region, together with a skilled dispute resolution team, who can advise on, and resolve any disputes that arise, making us best placed to advise on all stages of the construction project.

Construction projects often involve complex and lengthy contracts as well as the involvement and management of various parties. As time goes on, these projects may adapt and transform, or new laws and regulations may be brought into force, so it is vital that that the contracts appropriately cater for any such developments. Our lawyers understand these challenges and get a strong grasp on what will be required throughout the life cycle of the project, the basis on which the parties will be contracting with one another, and what level of contractual protection there is.

Building Safety Act
Construction Disputes
Contractors
Developers
Development Projects
Design & Consultants
Fit out Contracts
Funding & Development Finance
Large Construction Projects
Tender & Procurement
Training & Workshops

Building Safety Act

We can advise you in relation to all aspects of the Building Safety Act (“BSA”) and any new rafts of regulations which implement and support the BSA and on how it may impact your project or your business.

We can help you to navigate the BSA’s complexities, ensure compliance with the regulations, as well as assist in drafting contracts which cater for any developments within the legal and regulatory sphere.

Whether you are starting out in the construction industry or are an experienced property developer, our understanding of the market and law means we are able to apply a legal, commercial and contractually sound perspective to our support and advice.

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Construction Disputes

Disputes frequently arise in construction projects and can be difficult and costly to navigate. Successfully resolving or avoiding disputes is crucial to concluding projects on time and within budget.

We act for housebuilders, landowners, main contractors, sub-contractors, funders and professional advisors on all types of disputes and disagreements arising out of the construction and building industry.

Whether you require an early assessment of your construction contract to advise you on the merits of any potential claim, or if you are on the receiving end of a construction claim, our experts will tailor their approach to suit your needs and aims.

Construction Dispute Services

Contractors

Our construction lawyers regularly advise building contractors across complex commercial and residential build contracts. Our services span advising on standard form contracts, build contract, trade agreements, subcontracts and collateral warranties.

With a wealth of experience in advising contractors undertaking developments, we are able to offer strategic advice on various construction related documentation in order to maximise favourable provisions for our client and minimise legal risk exposure. We have experience advising on:

Main contracts
If you are acting as the main contractor on the project, we can review or produce and advise on the main building contract. Whether that be a standard form contract like a JCT or a bespoke contract, we have a wealth of experience across the team of assisting contractors to ensure that their position is suitably protected.

We have advised main contractors on a range of projects from high value single units, to multi-million pound extensive residential developments as well as commercial and industrial projects.

Trade Agreements
We can draft and negotiate trade agreements and advise you on the legal and commercial risks, seeing the project through from the start to the end. With all construction contracts, it’s critical that it is drafted in such a way as to suitably protect your position, reflect the nuances of the project and not causing any coverage issues with any insurances you have which are relevant to the project.

Sub-Contracts
Our lawyers help contractors engage specialised subcontractors via agreements conforming to the main contract. It is important that a subcontractor understands its obligations and delivers the goods or services within the given time frame and to a high standard in order to enable the main contractor to perform its obligations under the main contract. 

Collateral Warranties
Collateral warranties create a direct contractual link between the employer and the professional consultant or designer. They are often overlooked in terms of their importance and consultants frequently sign them without considering their terms. However, there is scope for issues with collateral warranties and consideration is merited. They extend liabilities to additional parties and can cause coverage issues with your professional indemnity insurance if not drafted correctly. Expert advice is always recommended.

Developers

We regularly advise developers on complex build projects in the UK. Our services span drafting and negotiating contracts to dispute resolution.

We have specialist construction lawyers that can provide advice to developers on housing estates, commercial buildings, infrastructure projects and more. We negotiate terms in standard form build contracts, and also advise on ancillary development agreements with contractors, purchasers and local authorities.

Whether you are starting out in the construction industry or are an experienced property developer, our understanding of the market and law means we are able to apply a commercial and contractually sound perspective to our support and advice.

Standard Form Build Contracts
Construction projects often involve complex and lengthy contracts as well as the involvement and management of various parties. Our construction team can advise on all standard form construction contracts (including JCT and NEC) and negotiate terms to produce a watertight contract in order to minimise the possibility of any future dispute.

Development Agreements
We advise stakeholders including funders, landowners and developers across a wide variety of residential and commercial development projects with a focus to protecting our client’s best interests. Our lawyers understand the challenges that are faced in negotiating and drafting development agreements and get a strong grasp on what will be required throughout the life cycle of the project, the basis on which the parties will be contracting with one another, and what level of contractual protection there is.

 

 

Development Projects 

Our construction lawyers are able to act for parties involved in real estate developments including landowners, developers and funders and can provide tailored legal solutions to guide them through the entire project. 

Our property lawyers regularly draft, negotiate and advise on the full raft of development agreements including option agreements, conditional contracts and overage agreements. 

The construction team can subsequently advise on all aspects of construction contracts and relevant documentation to ensure that the project is moving forward and in the right direction. Together, our collaborative approach and strong commercial sense can give you peace of mind that we have the know-how and resources to advise you fully. 

A few of our recent development projects include:

  • A block of residential flats with a build cost in excess of £10million to include advice on the latest high-rise building laws.
  • Property developer on a building contract with its contractor for the building, development and eventual sale of a single plot worth in the region of £13million.
  • A leading bank on the construction aspects (including main building contracts and collateral warranties) of its lend in respect of the development of a single plot worth in the region of £16million.
  • Helping a leading property developer on a building and development contract for multiple plots worth in excess of £1million.
Development & Housebuilding

Design & Consultants

The team is experienced in advising consultants and designers across areas like housing, commercial buildings, infrastructure, and fit-out projects. We understand the unique legal challenges consultants and designers face and are able to guide clients in negotiations to further their professional interests and mitigate legal risks.

Consultant Appointments
We regularly advise construction consultants and designers during project bidding and with onboarding, reviewing appointment contracts governing multi-year engagements. We are also able to negotiate terms relating to scope of services, timing, compensation, intellectual property rights over designs, professional indemnity coverage, limitation of liability, termination rights, and dispute resolution.

Standard Terms and Conditions for Consultants and Designers
Our team advises on industry favoured standard terms and amendments when consultants and designers need agreements governing their services. This covers aspects including payment milestones, ability to rely on client-provided project data, reimbursement of expenses, ownership over pre-existing/developed IP, professional liability carve-outs, and limitation of liability.

We also help consultants set up their own terms and conditions and have assisted designers with setting up their terms, including for those working on international projects.

Collateral Warranties
Collateral warranties create a direct contractual link between the employer and the professional consultant or designer. They are often overlooked in terms of their importance and consultants frequently sign them without considering their terms. However, there is scope for issues with collateral warranties and consideration is merited. They extend liabilities to additional parties and can cause coverage issues with your professional indemnity insurance if not drafted correctly. Expert advice is always recommended.

Fit out Contracts

Our construction lawyers have a track record of assisting clients on a wide array of legal issues on construction projects, including with negotiating and drafting fit-out contracts.

We understand the challenges of fitting-out a new premises as a tenant of a commercial building. Whilst it can be an exciting time for the business as a whole, there are various aspects to consider when undertaking an office fit out, including who to use as the contractor, ensuring you have a well drafted and protected contract for the works, and making sure that you have covered off all of the landlord’s requirements.

We would caution against using standard form agreements such as JCTs for fit-out projects without taking expert advice as they are not specifically set up for this type of project.

It is also important to ascertain which insurances are required, what is covered by those insurances and on what terms. When it comes to fit out contracts, there are two key items which need to be insured – the building as a whole, and the works which are being undertaken. Additionally, it is crucial to determine early on in a fit-out project who is taking out which insurance and who needs to be named on each policy.

We can also assist with obtaining the relevant landlord consents including assisting with any licences to alter.

As a result of our extensive experience in this field, we are able to apply a commercial and contractually sound perspective to our support and advice.

Funding & Development Finance

Our lawyers have a wealth of specialist expertise in acting for both lenders and borrowers in respect of construction related lending and borrowing. We are also supported by one of the largest property law teams in the Surrey, Hampshire and Berkshire region who can advise on securing development sites and regularly act for both lenders and borrowers in respect of real estate finance. We are also able to draw upon our banking team for their expertise in respect of all types of facility and loan agreements.

Together, we understand that to be able to successfully deliver a profitable development project depends on getting the right funding arrangements in place. There are a number of different types of finance available to developers and the option you choose will depend on the nature of the project, timescales, loan to value and exit strategy.

A lender will tailor their security requirements depending on the nature of the loan and a borrower will need to ensure that they are comfortable with the extent of the security requirements. It is therefore important for both parties to be carefully advised as to the extent of the security and the implications.

Our professional and proactive approach ensures that you can be confident that you have the right team in place to facilitate completion of your acquisition and funding leaving you free to get on with progressing the practical aspects of your project.

Property Finance

Large Construction Projects

In addition to advising on large scale residential and commercial projects, our expert construction lawyers have experience in advising on a number of specialist projects.

Our recent portfolio showcases the breadth and depth of our expertise and demonstrates our ability to navigate complex legal matters across a wide range of sectors:

  • The supply of leisure facilities in relation to football stadiums and surrounding areas, including in respect of one premier league football stadium.
  • A high value contract for construction of a building to a film studio.
  • Construction contract advice relating to works at a high end well known hotel.
  • Contracts relating to leisure facilities, including a multi-million-pound gym.
  • Construction law advice to a household brand car rental company in respect of its construction fit-out contracts.

Our experience in regularly handling high profile, large scale and complex projects means that we have developed in-depth experience and market knowledge that we are able bring to our clients on their projects. This ensures that our clients benefit from strategic insight and meticulous attention to detail, ultimately leading to successful project outcomes and sustained growth in their respective industries.

Tender & Procurement

Procurement involves the entire process from identifying needs to acquiring goods and services for the project. There are various procurement routes available, and there are multiple factors, such as funding arrangements, which may determine which route should be selected – those involved in construction projects will likely analyse these factors to develop the right procurement solution for the project they are working on.

There are a number of key procurement routes such as design and build, standard build, and construction management amongst others. Each have pros and cons and it’s crucial to select the right one for the project.

Tendering involves taking your project to the market and inviting bids from interested contractors to seek competitive offers for the supply of work, services or goods from potential contractors including builders and suppliers.

A crucial aspect of both processes is the contract drafting and negotiation to ensure that the contracts are in compliance with applicable laws and regulations, including competition, and that they ensure fairness, transparency, and efficiency.

If you are a public or private body seeking advice from an experienced legal team for support in managing the tendering and procurement processes, please do not hesitate to get in touch.

Procurement Lawyers

Training & Workshops

A single legal training session can help your staff to identify and deal with risks and issues and enable them to know when to seek further guidance. We offer training onsite or we would be pleased to host you at our offices. Alternatively, we can provide training remotely using video conferencing facilities, enabling live Q&A sessions.

We can provide training sessions which are designed to meet the needs of your business and address new or recurring issues which your business might face. We are experienced in providing training to staff across all departments, including in-house legal counsel and sales teams, to ensure that they stay ahead of current commercial law and / or regulatory law trends which might affect them in their roles within the business.

Training & Workshops

Construction FAQs

Is my contract a construction contract?  

Identifying whether a contract is a “construction contract” is extremely important yet can be complicated since the law specifies what types of contracts are, and are not, considered “construction contracts”. Whilst it will be clear in many cases, there are of course grey areas and legal advice should always be sought.

They are defined by the Construction Act as a contract “for the carrying out of construction operations” and it is the wording in this definition which can cause confusion. Since certain statutory provisions apply to construction contracts, the parties should be clear as to whether the agreement in question constitutes one – it may be problematic for parties to assume that they have a construction contract and that these statutory provisions apply, when they do not. Please do get in touch if you would like further information on this.

Does it matter how I execute a construction contract?

Yes. A contract can be executed either as a ‘simple contract’ or as a deed. There are differences between both, including whether consideration (i.e., money paid in exchange for goods and services) is required, but an advantage to executing a contract as a deed is that the limitation period for starting legal proceedings for a breach of contract will be 12 years instead of six years. It is important to execute a contract properly since a failure to do, particularly a deed, can result in an unenforceable contract. 

Are there any legal rules on what terms I should put in my construction contract?

Yes. If you have a construction contract, there are a number of specific clauses you need to have in your contract, failing which the law will imply terms to fill the relevant gaps. These relate to crucial terms such as payment provisions and therefore it is imperative you get these correct in your contract or the law may imply them for you.

Similarly, there are a number of clauses which are not allowed within construction contracts and therefore the law will effectively strike them out if they are included. Please do get in touch if you would like further information on these.

Can I sign a JCT or NEC in their existing formats and will they adequately protect me? 

Whilst the standard form contracts do contain a number of important provisions and are generally considered to be drafted in a reasonably balanced way, there are a number of areas which can be updated to provide enhanced protections or improve your position.

In addition, the contracts in their existing formats may not deal with certain areas sufficiently and therefore for most projects, some form of amendment to the standard form contracts is desirable.

As each project will be different and involve its own complexities, a “one-size-fits-all” standard form contract may not always be the correct approach, but it can on some occasions provide adequate protection.

What payment protections can contractors seek under a build contract?

There are a range of legal payment protections which contractors can seek under a build contract, such as how the payment milestones or intervals are set up, effective use of provisional sums, payment bonds and other protections such as personal or parent company guarantees.  

Will a standard form of sub-contract provide me with adequate protection?

It depends. There are many different standard forms of subcontract which are recognised in the construction industry. Standard forms can be useful as they avoid the need to draft the sub-contract from scratch, therefore saving time and costs. However, they will not be tailored to the specific project and therefore may not be directly relevant to the sub-contractor. We would recommend seeking legal advice as generally with standard form contracts some form of amendment is desirable to provide enhanced protections or improve your position.  

What is a development agreement?

A development agreement is a contract between the landowner and the developer that specifies the obligations, responsibilities, and requirements of the parties involved in a development project. It typically includes details about land use, timelines, financial considerations including how the developer will be paid, whether that will be based on profit from sale of units or other use. The agreement would also include (amongst other things) key provisions around duties of the developer, intellectual property and termination rights.

Will standard terms and conditions for consultants and designers give me adequate protection?

It depends. There are many different standard terms which are recognised in the construction industry. Standard forms can be useful as they avoid the need to draft the document from scratch, therefore saving time and costs. However, they will not be tailored to the specific project and therefore may not be directly relevant to the consultants or designer. We would recommend seeking legal advice as generally with standard form contracts some form of amendment is desirable to provide enhanced protections or improve your position.  

What termination payment should I require from a contractor if they unilaterally quit a development project?

We would advise you to speak to a lawyer about the particular situation, as it will depend on the facts and the provisions of the agreement they are party to, however we would recommend that the contract includes provision for how to seek recovery of your added costs in engaging a replacement, and how you will deal with previously paid sums for unfinished work.

Are collateral warranties necessary?

Collateral warranties are often required by lenders, tenants, or purchasers as a form of protection. They provide an additional layer of security and recourse if issues arise. If you have a funding agreement in place, we would recommend checking your funding agreement to see whether your funder requires a collateral warranty. In addition, if you are the employer, it is recommended that you obtain collateral warranties from any designers or design subcontractors with whom you don’t have a direct contractual relationship as they are not always mandatory.

Are the industry standard consultant appointments adequate to protect my position?

It depends. There are many different standard form appointment documents which are recognised in the construction industry. These can be a useful starting point, however, there are many provisions which frequently need updating and amending to ensure a suitable level of protection. In addition, the specific and nuances of each project need to be taken into account and factored into the drafting of each contract. We would recommend seeking legal advice as generally with standard form documents some form of amendment is desirable to provide enhanced protections or improve your position.  

Recent Work

Residential Flats

Advising a developer in respect of a block of residential flats with a build cost in excess of £10,000,000, to include advice on the latest high-rise building laws. 

£16m Development

Advising a leading bank on the construction aspects (including main building contracts and collateral warranties) of its lend in respect of the development of a single plot worth in the region of £16million.

£13m Plot Sale

Advising a local property developer on a building contract with its contractor for the building, development and eventual sale of a single plot worth in the region of £13million.

Stadium Facilities

Advising in relation to projects for the supply of leisure facilities in relation to football stadiums and surrounding areas, including in respect of one premier league football stadium.

Film Studio

Advising on a high value contract for construction of a building to a film studio. 

Hotel & Leisure 

Advising on a construction contract relating to works at a high end well known hotel. 

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Best Law Firms 2024

Herrington Carmichael has once again been named in the Times Best Law Firms. We were first listed in 2023 and have once again made the Best Law Firms list for 2024.

www.thetimes.co.uk/article/herrington-carmichael

Best Law Firm 2024