Onstruction law essay and legal problem case

Advanced Construction Law  BSM 576
Coursework Assignment 2009-2010

Coursework Assignment Guidelines

Students are required to attempt a legal problem question and write a word-processed essay on the essay topic below. The weighting as between the legal problem question and the essay is 50:50.

The following guidelines should be strictly adhered to:

1. The minimum and maximum word limits for each component of the assignment appear at the end of the relevant section of the assignment. These limits should be adhered to, otherwise the student will be penalised. Each submission should include a word count.

2. Footnotes/endnotes should be included in the essay. A bibliography should appear at the end of the essay. The bibliography should contain all relevant material consulted by the student, whether referred to in footnotes or not and material in the bibliography should be arranged under the following headings, where applicable:

Case Law
Internet resources
Other resources

Words in footnotes and bibliography should not be included when taking into account the essay word count.

3. Footnotes/endnotes must be used for referencing and further reading only and should contain as little text as possible.

4. Any deviation from the above guidelines will be penalised, either by a zero score or a lower mark.

5. May i also refer to some text books that are on the list of reading from the university, which may help our respected writer:

1. Construction law, John Uff, Tenth edition, sweet & Maxwell
2. MacRoberts on Scottish Building contracts, 2nd edition, Blackwell Publishing
3. James P Connolly, construction law, W Green/sweet & Maxwell 1999
4. Stephen Furst, Vivian Ramsey, Keating on building contracts, 7th edition
6. Surely, he can use other recent English construction law or construction contracts text books.
7. Health and safety commission, managing health and safety in construction (approved code of practice and guidance) 2007.
8.2009 Rita Donaghy s report to the government on health and safety in the construction industry titled  One death too many

Coursework Assignment

Section A
Legal Problem

Callow Construction Limited (CCL) has come under new management and has significantly improved on its services and reputation. It has become well known in the industry for successfully completing huge projects under tight deadlines and within budget.

Due to its enhanced reputation, it is the first contractor contacted by the Olympic Development Authority (ODA), to complete a section of the Olympic stadium, where the main contractor having gone into administration has withdrawn from the project.
Because of the pressure of time and the desire of the ODA for quick commencement, the ODA sends a letter of intent to CCL. The letter contains just the basic facts of ODA s intention to enter a formal contract with CCL for the completion of the section of the works specified therein. Some of the terms of the proposed contract (including time, some quality matters, employers right for early possession, interference by other contractors working for the employer etc.) were discussed orally but not settled, and further discussions had been scheduled, in a process that was to lead to a formal contract. The formal contract was not concluded at the time of the dispute under analysis.

On the basis of the letter of intent CCL had mobilized to site and began construction work. As of the 10th of October, 60% of the works had been successfully completed by CCL. There has been a disagreement over employer s interference via other contractors on the site and access to the works by CCL. CCL management is considering disengaging from the project. The only formal document covering the works is the letter of intent.

CCL has a standard insurance policy with New Insurance (NIS) to cover delay/non-payment of fees due it by other parties when it has achieved substantial completion of works as specified by that third party. Substantial completion is defined in the insurance contract to be 50% of the assigned works.

The insurance forms did not ask and CCL did not disclose that it had a previous reputation for  shabby construction under the former management.

CCL intends to rely on NIS to get immediate compensation for work undertaken in favour of the ODA.

Question (A)

1) Using relevant case law authorities outline and explain the requirements for a letter of intent to form a binding agreement, and what happens where the terms of such a letter is silent on quality and time?

2) Assume that the letter of intent has not crystallised into a binding agreement and did not include a rate of payment for the works. Prepare a legal opinion advising the management of CCL on the different avenues for payment by employers in the industry and the best option open to CCL under the facts of this case. Include in your answer all the factors that must be considered in determining the payment price under your preferred option.

Question (B)

Before the commencement of work by CCL, the ODA wrote to you requesting advice on the risks inherent in the project and in contracting with CCL. Write a legal opinion advising ODA on the risks you identify for the project and the appropriate insurance to cover them.

Minimum word limit for Section A Legal Problem  1,500 words
Maximum word limit for Section A Legal Problem  1,650 words

Section B
Essay Topic

Critically analyse and compare the recommendations of the 2009 Rita Donaghy s report to the government on health and safety in the construction industry titled  One death too many against current health and safety regulations in the UK construction industry. Based on the above, advise the government on whether further health and safety regulations are required for the industry or whether new regulations could lead to over regulation in an already challenging economic climate.

Minimum word limit for Section B Essay Topic 2,000 words
Maximum word limit for Section B Essay Topic 2,200 words