Construction Projects – Matters for consideration

PART I: PROGRAMME

What are target dates for?

• Application for planning permission?
• Grant of planning permission?
• Issue of tender documents?
• Commencement of work on site?
• Date of practical completion?
• Appointment of Professional Team?

PART II: PROFESSIONAL TEAM

• Architect
• Ground Investigation Consultant
• Independent Engineer
• Civil and Structural Engineer
• Mechanical & Engineering Consultant
• Quantity Surveyor
• Planning Supervisor
• Project Manager
• Owners Representative
• Other Consultants

Consider:-

• Terms of appointment and remuneration

PART III: FUNDING

Consider:-

• Terms of funding
• Security and collateral warranties required
• Process and timing around issue of stage payment drawdowns

PART IV: DISPOSAL OF DEVELOPMENT – STRUCTURE

1. Development Agreement

• Consider whether any contractor has a design responsibility under a design and build contract
• Payment milestones
• Target date for practical completion

2. Building Contract

Consider:-

• Identity of main contractor
• Prepare Specifications and/or Bills of Quantities
• Type of building contract to be employed, whether RIAI with or without quantities, or other
• Identify any proposed sub-contractors or sub-contract packages with any design responsibility
• Whether any guarantee or bond (including, without limitation, any parent company guarantee, performance bond, advance payment bond, retention bond or bond in relation to off-site materials or goods) is required in connection with any building contract or the works
• Whether a separate contract is required for any civil engineering works
• Whether a performance bond is required from the Contractor

PART V: PROFESSIONAL INDEMNITY INSURANCE

Consider:-

• Whether any contractor is required to maintain professional indemnity insurance and, if so, in what sum, on what basis and for what period
• Whether any sub-contractor is required to maintain professional indemnity insurance and, if so, in what sum, on what basis and for what period
• The sum, basis and period for which each professional consultant is required to maintain professional indemnity insurance

PART VI: OTHER INSURANCE

Consider:-

• Who is required to take out and maintain the insurance of the Works?
• Confirm that the contractor(s) are required to maintain contractor’s all risks (CAR) and public liability insurance, and in what sum(s)
• Whether any party has agreed to provide product liability insurance (whether instead of or in addition to professional liability insurance or otherwise) and, if so, which party, in what sum, on what basis and for what period
• Whether, if different, the employer have taken out [or proposes to take out] any other policies of insurance in connection with the Development or the Works (including, without limitation, any decennial or latent defects insurance, any project insurance policy and any environmental or other specialist insurance policy)

PART VII: ASSIGNMENT AND COLLATERAL WARRANTIES

Consider:-

• Whether any assignment of the benefit of any construction document is proposed (including, without limitation, the assignment of the benefit of any development agreement, building contract, professional appointment, survey, report, collateral warranty or third party rights)
• That all contractor(s) will supply a collateral warranty in an agreed format
• That all sub-contractors identified will supply a collateral warranty in an agreed format
• That all professional consultants will supply a collateral warranty in an agreed format or incorporated in the (relevant) professional appointment
• Whether any step-in rights arise in connection with the Development or the Works.

For further information on this topic, please contact Brendan Sharkey on bsharkey@reddycharlton.ie