This episode includes:

• 00’30” – Introduction to the different dispute resolution forums. 
• 01’00” – Litigation – going to court to resolve a dispute.
• 03’30” – Arbitration – a private forum which will use standard rules or those determined by parties to the dispute. 
• 05’40” – Binding: What does a ‘binding’ decision involve? How can you ensure you get the money you’re owed?
• 07’00” – Adjudication as opposed to arbitration – what are the differences and how does construction adjudication work?
•  11’30” – What happens if you don’t like the outcome of an adjudiction decision?

If you have any questions or would like to talk about any of the issues raised in the podcast please get in touch with the team today – www.overford.com. You’ll also find this and other episodes of the podcast on your usual podcast player.

Thank you for listening to the Overford podcast. Every effort is taken to ensure the podcast’s accuracy, but its content should not be construed as legal advice.

The post Different Construction Dispute Resolution Forums – The Overford Podcast appeared first on Staging - Overford.

So how can you ensure a successful final account agreement and avoid those legal bills? We take a look at some suggestions…

Records

Firstly of course, and as always, records are critical. These records will form the foundation for successful negotiations. To demonstrate entitlement to payment of sums due under the contract, you will need good and accurate records. Especially if any matters are disputed.

This is one of the many areas which causes disputes and problems for contractors and clients alike. Without good record keeping, finalising the account will prove challenging. A helpful tip to remember when compiling your records is the three “c’s” clear, concise and comprehensive.

Variations

Changes from the original contract scope will inevitably lead to a change in price. You will need to negotiate these changes or variations, ideally throughout the contract. You will need to demonstrate your entitlement to these changes and as always, you will need good records.

Fluctuations

If your contract includes a fluctuation provision this will need to be reviewed carefully. It will likely involve a complex calculation which can increase or decrease elements of your contract sum.

Loss and Expense

If your works have been delayed through no fault of your own, you may be entitled to claim for loss and expense. The contract will likely deal with notice provisions. But, it is likely that any loss and expense will be discussed at length in the final account negotiations. You should be prepared to revisit your claim and explain your entitlement, including what mitigation measures you put in place. Once again, good records are needed.

Contract

Again, something that is often neglected, it is critical to check what your contract says. Different contracts will have different requirements for the submission of final accounts, particularly in terms of the form they take and the dates at which it must happen. It is important to understand the difference between an interim final account and a final statement.

Under the standard JCT, for example, the finalising of the accounts statement will lead to the resolution of any disputes. Note that there is often a very short time from the issuing of a final statement and it becoming conclusive. Once finalised and that timeframe has passed, it will not be possible to dispute any sums due.

Something that is important to reiterate here is that not every contract will be the same. Not even every issue of the same contract will be the same from project to project. Some will have had changes and amendments made that may change the risk profile significantly. You should be alive to any adjustments that may have been made to what you might expect as the ‘norm’ in a contract.

Commercial

Ultimately, final account negotiations are likely to be a matter of commerciality for both sides. But a well-prepared negotiation where you are in full possession of the facts, records, and documentation, will ensure the most probable chance of success.

Should you need any support or advice on the issues outlined in this article, just get in touch with Jason or Guy today.

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What happens if there’s a ‘fallback’ or second application stage? Is that good for the construction project and the parties in the project? 

What does an application for payment look like or need to look like? And what about contractual language – what do all the different terms – certification, payments, sums, true valuation, and other jargon mean? 

What happens next if you lose a smash-and-grab or ‘true value’ adjudication? Can you recover from a technical adjudication in, for example, a subsequent adjudication? 

What about payment? How successful is enforcement and is it easy to actually get paid when an adjudication decision has been reached? And who pays the fees of the adjudicator – does the referring party have to pay those up front? 

Find out the answer to all these questions and more in this episode of the Overford podcast. For more on Smash and Grab, read this article, and as always, if you need help just get in touch with the team today.

The post Smash & Grab Adjudications – The Overford Podcast appeared first on Staging - Overford.

The construction industry has something of a bad reputation when it comes to managing cashflow. Earlier this year, research found that half of all invoices were paid late.

In some cases, those invoices are never paid at all. Nobody can guarantee one party will pay another party. Even the projects which start on the very best foot, sometimes go south when it comes to payment.

However, in our time helping construction companies secure payment, there are several issues we see time and time again.

Prevention is always better than the cure. Getting things right at the outset should mean that if there is a payment issue, you are best placed to get an adjudication decision in your favour.

So, on that note, we thought we’d share with you some of our top tips for making sure you get paid:

Follow the contract

This may seem obvious, but it’s surprising how quickly the contract is forgotten once the project starts and the project team become too busy!

Whatever your contract says about payment, follow it. Parties often worry that relationships can be damaged by following the contractual processes. But they may be far more damaged by a payment dispute.

It is likely that your contract will contain payment provisions. These will set out when and how you should submit applications for payment. Make sure you are following those provisions to the letter of the contract.

We have, on occasion, seen successful adjudications where sums have been awarded when parties have not strictly followed the contract. But do you want to add this element of risk and the potential for an adjudication? Clarity should ensure that such a scenario doesn’t arise in the first place.

Set out a clear application for payment

Applications for payment often suffer from poor presentation. Pay attention to the detail, and you’ll be less likely to encounter problems.

Firstly, use the same language as in your contract. So, if your contract refers to ‘Interim Payment Application’ make sure that is written clearly across the top of the page. That way there can be no ambiguity.

Payment applications should make it clear that is a demand for money owed. State the contract value for the entire contract. Then make sure the application for payment is cumulative and deduct the previous amount that has been paid.

Submit your application on time

Follow the application for payment dates within the contract if known. Similarly, dates by which those applications must receive a response. It can be helpful to set up a calendar or diarise the necessary dates to ensure you don’t miss them.

Failure to submit applications on time might mean that your payment has not become due. If your contract is not clear when a payment becomes due or when is the final date for payment then legally the Housing Grants, Construction and Regeneration Act 1996 as amended (“Act”) steps in to ensure you have a suitable mechanism.

Provide back up

There is a reason we repeatedly emphasise the importance of not only records but good records. Provide evidence to support your application for payment. This might include instructions, a schedule of rates, quotes, an explanation of any variations, photographs, receipts, and supplier invoices.

If you are not able to provide all the supporting records, at the very least, provide a detailed commentary on why you are claiming the figures submitted. If doing so, try to keep language plain and clear. Stick to the facts and try not to overcomplicate things.

Refrain from issuing invoices

Unless the contract strictly requires invoices to be issued for payment, avoid issuing invoices. All too often invoices show only the net amount claimed rather than a cumulative sum less previous paid or due to be paid. As always, clarity is key. If a dispute arises, it’s crucial that you have been clear about what you have requested to be paid and what has already been paid.

If you follow these steps, you should be far more likely to receive payment for the work you’ve completed. However, if you find yourself struggling to get paid, get in touch with one of our team to see how we can support you.

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Why subcontractors should never walk off-site when they are not getting paid

How can you engage your client if you are not being paid on-site? Is walking off-site an option?

In this new podcast, Guy joins Paul Hemming of C-Link for an episode of Own The Build.

The two debate the best strategies for both main and subcontractors when the subcontractor threatens to walk off-site due to payment. They discuss why subcontractors should never walk off-site and, instead, what they should do while at the same time looking at things from a main contractor’s perspective too. 

Listen to the podcast below or stream the full episode on Apple, Spotify, and Google by searching ‘Own the build’

If you are struggling to get paid, get in touch to find out how we can support you or read more about out dispute avoidance services.

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Last month I joined London Constructing Excellence Club for a talk titled “MMC: Solution or Hype?”. Professor Stuart Green questioned whether the praise levelled at Modern Methods of Construction as the solution to all construction’s problems is justified. And when it comes to encouraging companies to adopt MMC, I tend to agree. We should be leading with clear benefits, not vague, fix-all promises.

However, in my personal experience, MMC can be, and often is, a positive alternative to traditional construction.  I have been working with one of my long-standing clients on volumetric building for over ten years. Having covered over £1.8bn of development value in London, I think I can speak freely on volumetric building.

What is Volumetric Construction?

Sometimes known as ‘prefabricated building’, volumetric construction is the process of manufacturing the components, or modules, of a building off-site. They are then connected together at the required location to form a completed building.

When I have to explain these methods to clients, I try to keep it simple.  I usually explain that it is traditional construction but built off-site. The system I am most familiar with uses common materials you would use to build in a traditional manner, such as steel and concrete. Once a module is complete, it is delivered to site and installed. Other modules are then connected in some way (not just bolted!).

This video of a hotel project being put together on-site is a perfect example.

What are the Barriers?

One major worry we often come across is the connection of the modules. In particular, issues surrounding fire barriers/fire stopping and the attendant insurance risk can put clients off. I have heard the phrase ‘zip-up works’ used to represent the final connecting works.

In my experience, a great amount of time is spent on working through the design. A large part of that is working out how modules will be connected to ensure regulatory compliance.

Another common barrier is a logistical one. As the modules are produced offsite, they need to be transported and delivered to the site. Whilst the speed at which this can happen is usually positive, unforeseen delays at this point (such as the site not being ready or having appropriate access) can cause major problems.

Transport costs can also be a factor to consider. The further the site from the factory, the more it will cost to have the modules delivered to the site. Similarly, specialist vehicles are required.

Finally, and probably one of the most significant disadvantages is the lack of design flexibility. At the outset, plans can easily accommodate bespoke features. However, when building in this way, all designs must be approved very early on in the process. Once manufacturing starts, change is limited – and can be very expensive.

Why is There a Learning Curve?

Every modular project I have been involved in over the last 25 years suffers from a learning curve. This often brings with it many questions. Unsurprisingly, the main topic is how does the system meet building regulations? This is where we start to get to the crux of the matter.

I am not aware that building regulations recognise volumetric construction. This is something both Professor Green and Mark Farmer have recognised as a barrier to MMC. It appears to inhibit volumetric construction from being widely adopted as a method to solve the housing crisis.

If we were to have a set of building regulations that cover MMC, and in particular volumetric construction, then surely this should at least provide some legitimacy to the methods.

It would allow teams who carry out due diligence, to have direct reference to regulation so that the proposed method of construction can be validated.

What About Pipeline?

I think this is an obvious concern. Investment into MMC is huge. We only need to look at what has happened recently with Legal and General (who probably had more funds available than most) to see that pipeline or lack of certainty in that pipeline could create an uneconomical situation.

There is a fallacy that MMC costs less.

In my experience, it doesn’t. However, what it does do is provide more efficient programmes which can be very significant. This gives investors a faster ROI (Return on Investment). So, projects can be delivered more quickly.

What About Quality?

Again, in my experience, there are excellent processes in place in the factories to manage and check quality. Therefore, the quality of the products (if we call them that) should be of a high standard due to the process.

Another benefit is that there are significantly fewer vehicle movements and the projects require less labour on site. This has to be a good thing surely from a health and safety perspective.

In Summary

MMC or volumetric construction which I have focused on brings benefits, such as speed and quality. This all leads to a quicker return on investment. But there are barriers to adoption.

So why is MMC and or volumetric construction seen as a competitor to ‘traditional construction’?

I don’t understand why when I have lived in it for over 10 years. What I have learnt is that not every project design suits a particular method of construction be it modular or otherwise. MMC and modular construction should be embraced as co-existing with traditional construction. It is just another way to build, and there is no one size fits all solution.

Please don’t hesitate to get in touch with us.

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A bit more on the club:

Founded as Warrington Zingari Football Club in 1876, they are one of the original twenty-two clubs that formed the Northern Rugby Football Union in 1895 and the only one that has played every season in the top flight. They are nicknamed “The Wire” in reference to the wire-drawing industry in the town.

Warrington have local rivalries with Widnes, St Helens and Wigan. They have won three league championships and are the fourth most successful team in the Challenge Cup with nine victories, behind Wigan, St Helens and Leeds. Their most successful season came in 1953–54 when they completed a championship and Challenge Cup ‘double’, beating Halifax twice in the space of four days to first win the Challenge Cup 8–4 in a replay at Odsal, then clinch the championship 8–7 at Maine Road.

Thanks to Wikipedia for the above, and we look forward to seeing how the team get on during the rest of the season – come on the Wires!

And as always, if you need any support reducing risk on your projects and tackling the challenges of construction, get in touch today.

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The $1 billion Midfield Terminal Building at Indianapolis International Airport, aimed to create a transport hub for the city. During the construction, a steel roof structure partially collapsed. The roof was being held by two shoring towers. Incorrect lifting and jacking operations by the steel erection sub-contractor were the cause of the collapse.

The collapse caused over $100 million of damage and associated loss and expense and delay costs. In addition, the incident necessitated in an immediate cessation of the entire work for several weeks. This led to the main contractor making an insurance claim.

We supported the insurance principle to appraise the extent of the delay and damage. This continued for the entirety of the required investigation and reinstatement of the damaged works.

As part of that work, we provided an experienced site team of surveyors, estimators, engineers, and planners. The team appraises the extent of the damage and tracked the project through the repair work. This involved completing a cost reconciliation of the contractor’s submissions.
Additionally, our team carried out a delay analysis across the whole project.

From there, we provided an assessment of the related delay costs from contractors and sub-contractors. We were also liaising with engineers on proposals for rectifications and agreeing on the final account relating to the insured peril/loss.

This project was particularly challenging. As can often happen in high-pressure environments, communication with the contractor broke down. The contractor was unwilling to take a productive role in the repairs. This meant extensive and time-consuming interactions. Ultimately, we ensured our client was protected from excessive and unrelated cost claims and delay damages.

Are you are looking for support on the management and assessment of claims? Download our insurance capability statement, or get in touch to find out how we can help you.

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The late Max Abrahamason, a well-known engineer and expert noted that anyone involved in a construction project would soon learn the importance of “records, records, and more records” – but should you record absolutely everything? The importance of recording the right thing in the right way rather than everything all the time may be crucial to success.

The team look at a range of options for record keeping. The options discussed range from harnessing drone technology, geotags and use of tablets, through to the tried tested paper records. They look at the critical importance of regular and consistent record keeping.

Should we see a return to the clerk of works? What do different contracts say about record keeping? Find out in the latest podcast from Overford.

Subscribe to the podcast through your usual podcast source – search ‘Overford’ in your player. We’re on iTunes, Spotify, Google podcasts , and more. And if you need any help with record keeping or anything else, get in touch today.

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We are thrilled and proud to celebrate our first anniversary and reflect on the incredible journey we’ve had so far. From the early days of brainstorming and planning to our launch and growth, it has been an exhilarating experience to build this company from the ground up.

We are grateful to have had the opportunity to work with a talented team of individuals. Each one of them has shared in this vision and has contributed to our success.

But most of all, we are grateful to our customers. You have trusted us with your business and have been instrumental in our growth. Your feedback and loyalty has been invaluable, and we are honoured to have been able to serve you.

As we celebrate this milestone, we are excited about what the future holds for Overford Ltd. We will continue to work hard to deliver the best possible service and make a positive impact in our industry.

Thank you to everyone who has been a part of the journey, and here’s to many more years of success and growth!

If you have any enquires, please don’t hesitate to get in contact with us

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