However where the Contents of the existing structures are not the responsibility of the Employers, you as Contractor are responsible to indemnify the Employer against any liability they may incur to Third Parties for any loss or damage to the Contents due to your negligence, omission or default, subject to the minimum limit of Public Liability you have in place. Many Employers are not aware that they may have no rights of recovery from a contractor in the event of damage caused to their existing structure during such works and this clause is often overlooked. Whilst this Clause gives particular protection to a Contractor, it is extremely difficult for the Employer to adhere to the full requirements in this clause. This essentially means that the Employer has a huge risk exposure and does not have any method to recover losses caused by the contractor via the Contractors insurances or the existing structure insurance policy.
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The following is a summary of some of the key features of the new editions and the amendments made to the earlier editions of the forms of contract. Amendments to address the Construction Contracts Act CCA The CCA introduced statutory adjudication a new fast track dispute resolution process for payment related disputes , suspension rights for contractors and subcontractors as well as new payment regime for the industry.
Pursuant to Section 31 of the CCA, a Construction Contract must provide for the amount of each interim payment and the final payment to be made or alternatively for an adequate mechanism for calculating those amounts. A number of amendments have been made to incorporate such terms and reflect this legislation in the new RIAI forms of contract. Once the certificate is presented to the Employer, the Employer must pay the amount due within seven working days. Where the amount certified by the Architect differs from the amount set out by the Contractor in the progress statement, the Contractor is automatically entitled to an explanation from the Architect specifying the reasons for the difference and the basis on which the amount certified for payment is calculated.
Under the edition the Contractor is not entitled to this explanation unless he or she requested it specifically; 3. Amendments to Condition 38, Avoiding and Resolving Disputes Condition 38 does not expressly refer to adjudication. The right to refer a dispute to adjudication is a statutory right provided for under Section 6 of the CCA and it applies to all construction contracts entered into after 25 July The RIAI have therefore taken the view that it is not necessary to amend Condition 38 to specifically refer to adjudication as an available means of formal dispute resolution.
The statutory right of the parties to refer a payment related dispute to adjudication exists independently of the contract and regardless of what is provided for in the contract. Condition 38B provides that any dispute may be referred to arbitration. This part of the contract has been simplified to reflect certain changes under the Arbitration Act as well as recent case law. Plans for further edits to the Forms of Contracts The RIAI have stated in their guidance note relating to the revised forms that they have tried to minimise the changes to the RIAI contracts and keep the edits as simple as possible pending further work on the next editions.
As construction contracts and the laws that govern them become increasingly complicated due to modernisation, technical advances in the industry and changes in the regulatory landscape, the need for further updates and amendments to these and other standard forms used within the Irish market will most likely continue. For further queries or information please contact Seanna Mulrean. Related People.
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RIAI construction contract (with quantities) (yellow). 2017 edition