Implied Terms in Construction Contracts

Question 1

What are the two sources of implied terms in construction contracts?

Answer 1

Rule of law/statute and parties’ assumed intentions.

Question 2

Name the two acts which contain statutory implied terms for construction contracts.

Answer 2

Housing Grants, Construction, and Regeneration Act 1996, and the Supply of Goods and Services Act 1982.

Question 3

What are the two main approaches of common law for implying terms in construction contracts?

Answer 3

The Moorcock approach and the implication of usual terms.

Question 4

Which case established the conditions to be satisfied for implying a term based on business efficacy?

Answer 4

BP Refinery v Shire of Hastings.

Question 5

What is the contractor’s implied obligation regarding workmanship in a construction contract?

Answer 5

Proper skill and care, using materials without defects.

Question 6

Which case established the contractor’s duty to warn of obvious design defects?

Answer 6

Plant Construction v Clive Adams.

Question 7

What are some of the usual terms implied for employers in construction contracts?

Answer 7

Co-operation, role of certifier, supplying information, reasonable timing, and not preventing completion.

Question 8

What is the main purpose of implying terms into construction contracts?

Answer 8

To ensure the contract functions efficiently and fairly.

Question 9

How do entire agreement clauses potentially affect the implication of terms in construction contracts?

Answer 9

They may limit or exclude the possibility of implied terms, as seen in Axa Sun Life v Campbell & Martin.

Question 10

What is the implied term regarding materials supplied by the contractor in a construction contract?

Answer 10

The materials should be fit for their purpose and of good quality.

Question 11

What is the implied warranty concerning the fitness for purpose of completed works in a construction contract?

Answer 11

If the employer communicates the purpose of the work and relies on the contractor’s skill and judgment, the completed work must be fit for that purpose.

Question 12

When might an implied term of fitness for purpose apply in a design and build construction contract?

Answer 12

When the contractor is hired to design and construct a project, unless the contract excludes this term.

Question 13

What are the employer’s obligations regarding the role of the certifier in a construction contract?

Answer 13

The employer must ensure the certifier performs their duties properly if they do not follow the contract terms.

Question 14

What is the employer’s responsibility regarding supplying information to the contractor in a construction contract?

Answer 14

The employer must provide necessary instructions, information, and plans at reasonable times to enable the contractor to complete the work.

Question 15

What is the employer’s implied term concerning not preventing completion in a construction contract?

Answer 15

The employer must not hinder or prevent the contractor from completing their work as per the contract.

Question 16

What are the two main approaches courts use to imply terms into construction contracts at common law?

Answer 16

(1) The Moorcock approach and (2) the implication of usual terms in certain types of contracts.

Question 17

What are the key conditions to be satisfied for a term to be implied based on the business efficacy test?

Answer 17

The term must be reasonable, equitable, necessary for the contract to work efficiently, obvious to both parties that it should be included, and capable of clear expression without contradicting any express terms.

Question 18

Which case established the conditions to be satisfied for the business efficacy test?

Answer 18

BP Refinery v Shire of Hastings.

Question 19

What is the implied term concerning workmanship in a construction contract?

Answer 19

The contractor must perform the work with proper skill and care, using materials without defects, and this is a continuing obligation throughout the duration of the works.

Question 20

What was established in the case of Plant Construction v Clive Adams.

Answer 20

The contractor’s duty to warn of obvious design defects established?

Question 21

What is the employer’s implied term of co-operation in a construction contract?

Answer 21

The employer must work together with the contractor to help complete the project, including providing access to the site.

Question 22

Which case clarified the employer’s duty of co-operation in a construction contract?

Answer 22

London Borough of Merton v Stanley Hugh Leach.

Question 23

What is the employer’s responsibility concerning reasonable timing for providing instructions and information to the contractor in a construction contract?

Answer 23

The employer should give instructions and information based on the contractor’s needs and the progress of the work.

Question 24

Which Act contains statutory implied terms in construction contracts relating to dispute resolution, stage payments, and payment mechanisms?

Answer 24

The Housing Grants, Construction, and Regeneration Act 1996.

Question 25

Which Act contains statutory implied terms in construction contracts ensuring reasonable care and skill, timely completion, and reasonable charges?

Answer 25

The Supply of Goods and Services Act 1982.

Question 26

In which case was it established that entire agreement clauses may affect the implication of terms?

Answer 26

Axa Sun Life v Campbell & Martin.

Question 27

What is the contractor’s implied term concerning the supply of materials in a construction contract?

Answer 27

The materials supplied must be fit for their purpose and of good quality.

Question 28

In which case was the implied term of fitness for purpose of completed works in a construction contract established?

Answer 28

Greaves & Co Ltd v Baynham Meikle.

Question 29

Which case established the employer’s implied term to provide access to the site?

Answer 29

Ductform Ventilation (Fife) Ltd v Andrew’s Weatherfoil.

Question 30

What is the employer’s responsibility regarding the role of a certifier in a construction contract?

Answer 30

If a certifier is not following the contract terms, the employer must ensure they perform their duties properly.

Question 31

In which case was the employer’s responsibility regarding the role of a certifier established?

Answer 31

Panamena v Leyland.

Question 32

What is the employer’s implied term concerning supplying necessary information to the contractor in a construction contract?

Answer 32

The employer must provide the contractor with necessary instructions, information, and plans at reasonable times so the contractor can complete the work.

Question 33

Which case applied the conditions to be satisfied for implying a term based on business efficacy, established in BP Refinery v Shire of Hastings?

Answer 33

Marks & Spencers v BNP Paribas

Question 34

In which case was the contractor’s continuing obligation to workmanship throughout the duration of the works established?

Answer 34

Surrey Heath Borough Council v Lovell Construction Ltd

Question 35

In which case did the court imply that the the materials supplied by the contractor must be fit for their purpose and of good quality.

Answer 35

G H Myers v Brent Cross Service Co

Question 36

What term was implied by the court in Greaves & Co Ltd v Baynham Meikle?

Answer 36

If the employer tells the contractor the purpose of the work and relies on their skill and judgment, there’s an implied warranty that the completed work will be fit for that purpose.

Question 37

In what case was the term of fitness for purpose implied for the contractor’s design in a design and build construction contract?

Answer 37

IBA v EMI & BICC

Question 38

What terms were held to be implied in London Borough of Merton v Stanley Hugh Leach?

Answer 38

The employer’s duty of co-operation in a construction contract and not to hinder or prevent the contractor from completing their work.

Question 39

What employer’s obligation was implied by the court in Ductform Ventilation (Fife) Ltd v Andrew’s Weatherfoil?

Answer 39

Employer’s implied obligation to provide access to the site.

Question 40

What was established by the court in Panamena v Leyland?

Answer 40

If a certifier (usually an architect or engineer) is not following the contract terms, the employer must make sure they perform their duties properly.

Question 41

What case considered what is reasonable in terms of the employer’s obligation to provide the contractor with necessary instructions, information, and plans at reasonable times so the contractor can complete the work?

Answer 41

Neodox v Swinton and Pendlebury BC

Question 42

What did the court find in Glenlion Construction v The Guinness Trust?

Answer 42

Did not imply an obligation on the Trust to comply with an early program date for completion because the program was not a contract obligation.

Question 43

In which case was an employer’s obligation not hinder or prevent the contractor from completing their work implied by the court?

Answer 43

London Borough of Merton v Stanley Hugh Leach.