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BNV 5079 Contract Law

tag 0 Download 7 Pages / 1,634 Words tag 19-07-2021



The ABC Group, a developer is into the business of developing shopping centres and retail parks throughout the UK and other parts of Europe. Due to the nature of clients the company deals with, sustainability is a key requirement for all the company’s projects. The company has acquired land/premises at different locations within the West Midlands and wishes to undertake work on three different projects at once.  This involves undertaking both new building works and some refurbishment works to existing premises they have acquired.  Some of the works required are as follows:

a) ABC has acquired some land and is currently building a retail Park in Wolverhampton;

b) ABC has acquired an existing property in Perry Bar which is suitable for building a shopping centre; and

c) ABC intends to build a leisure centre in Coventry where the company has acquired some land with existing property

Vardy who works for ABC, has been given the responsibility of managing these projects.

1. Why are alternative forms of dispute resolution (ADRs) preferable to litigation for settling construction disputes?  Discuss three alternative forms of dispute resolution give examples of when they can be adopted by ABC for settling disputes that may arise during the execution of their projects. 

2. Frank has shown interest in renting a space for his bridal shop in Perry Bar. For this reason, Vardy invites Frank to the site for the shopping mall at Perry Bar, to view some completed sections of the mall. After visiting the designated sections, Frank decided to walk to other areas of the site and falls during the process leaving him with a sprained knee. This accident causes him to miss his daughter’s wedding which was the next day. Frank wants to sue the ABC group for missing his daughter’s wedding due to this accident. Advise both Frank and Vardy. 

3. Using your choice of contract form as the basis, discuss the roles of four of the parties to a building contract. Make reference to contract clauses where appropriate.

4. Discuss four remedies for breach of contract and advise Vardy on the likely situations that would require the application of such remedies on the three projects the company is currently involved in. 

5. The ABC Group as part of their current reshuffling, has transferred a member of their senior management team, Pierre, from France to head their contracts management division in the West Midlands. Even though Pierre knows a lot about the industry due to his experience in France, he wants to be sure he understands the UK legal system and how it influences the construction industry. He specifically wants to know how laws are made in the UK and any specific legislation which influences the formation and execution of construction contracts. You are to write a report to the contracts manager providing answers to all his queries.

6. As part of the retail part project in Wolverhampton, Pierre needs to obtain some tenders for the resurfacing works for the car park and called three known paving experts if they were willing to tender. All three companies were invited at different times to measure the car park so they can send in quotations for the works to be done. One of the companies, Kings Outdoors sent a ‘Works Order’ letter with the following cover.

“We are happy to undertake the necessary works for the price of £285,000”.

Upon receiving the letter, Vardy sends a response to Kings Outdoors with the following statement.

“Thank you for your interest in undertaking this project. We are very happy to inform you that, we are willing to give you this project if you will be able to execute the work for £15,000 less than the amount quoted in your works order. If we do not receive any response from you within the next two weeks, we will assume you are happy with the terms and will be expected to commence work on the 16th of January, 2017”.

As at 24th February 2017, no work had commenced on the site by Kings Outdoors and Vardy has called the company threatening to sue them for non-performance.

Advice the two parties.

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