Case Law Coffee Break - Spring 2025

In episode 89 of The Subcontractors Blueprint podcast, host Jacob Austin introduces the "case law coffee break," a segment focusing on recent legal rulings affecting subcontractors in the construction industry. Jacob discusses three pivotal cases:

1. Morgan Stone Limited vs. Bergkamp Limited - This case highlights the implications of acting as if a revised payment schedule has been agreed upon through performance.
2. Providence Building Services Limited vs. Hexagon Housing Association Limited - This case addresses contract termination due to late payments and the importance of understanding default notices.
3. JV Homes vs. Fincham Demolition - This case explores the formation of contracts through informal communication, such as WhatsApp messages.

Jacob provides valuable insights and takeaways for subcontractors to navigate these legal complexities effectively.

 

KEY TAKEAWAYS:

•  Discussion of recent legal rulings affecting subcontractors in the construction industry.
•  Even in the case of payment schedules, acceptance through performance can apply.
•  Understanding the complexities of contract termination and the necessity of adhering to notice requirements.
•  Recognition that informal communications can create binding contracts.
•  Emphasis on the need for clear documentation of agreements to prevent disputes.
•  Awareness of statutory protections under the Construction Act that benefit subcontractors.
•  The requirement to read and understand your sub-contract is ever present.

BEST MOMENTS:

"Firstly, if you start acting as if a schedule has been agreed, then you're effectively agreeing it by performance."

"So if you're ever in a place where you are appointing subcontractors, remember that even if you accept an offer informally, you could quickly be landing yourself with a contract."

"The judge decided that the subcontract that had been issued later was absolutely irrelevant to the situation, because the contract had already been crystallised."

"The Construction Act applies to all construction and demolition, and is implied if there are no conditions in place whatsoever."

"Termination is a really tricky part of the contract to administer."

 

Jacob is on a mission to help the 1 million SME contractors working within the construction industry. If you've taken something of value from this episode, please share the podcast with someone you know, and pass the value on.

HOST BIO: Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at construction industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M in concurrent developments, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

Instagram - www.instagram.com/qs.zone/

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