Construction

In Daewoo Shipbuilding & Marine Engineering Co Ltd v INPEX Operations Australia Ltd  NSWSC 1125, Daewoo sought to prevent INPEX from calling on a bank guarantee. The Supreme Court ruled against Daewoo. Under a construction contract, the Principal may be entitled to call on a bank guarantee, even while the…

A new trend has emerged in the drafting of construct-only construction contracts which places unexpected design risks on Contractors. Contractors should pay close attention to any clause containing the terms buildability or constructability, which may entail broad design obligations, even where the contract is otherwise a construct-only variety such as…

Modern construction contracts increasingly blur the roles and responsibilities of the parties. Consistent with this pattern, ‘Fitness for Purpose’ (FFP) warranties may be used to place the design risk on the contractor (as opposed to the designer or professional engineer). Contractors should be aware of express and implied FFP warranties…

Rise and fall clauses have been largely overlooked in the Australian construction industry for over two decades. Interest has picked up in recent months due to rapid increases in materials prices. As we re-enter an inflationary environment, legal practitioners and Contractors should learn about or refresh their knowledge of rise…