Civil Contractors & Difficult Clients

Various disputes often arise after a Client engages a Civil Contractor to perform civil work.

For instance, after a Civil Contractor commences the work, the Client may unreasonably interfere with the performance of the work.

Thereafter, the Civil Contractor, in response to the Client’s interference and without the protection of suitably drafted Terms & Conditions, may unilaterally withdraw from the site.  By unilaterally withdrawing from the site, the Civil Contractor may be:

1. committing a breach of the agreement; and,
2. exposing itself to costly legal claims being made.

For Civil Contractors to resolve disputes at an early stage in a cost-effective way, they should first enter into an agreement with suitably drafted Terms & Conditions which provide protections, as follows.

First, the Terms & Conditions should:

1. include a broad and non-restrictive definition of ‘Variations’; and,
2. state that whether a Variation is agreed to (where the Client requests the Variation):

• is at the Civil Contractor’s absolute and unfettered discretion; and,
• depends on the parties reaching a written agreement as to a revised contract price for the varied work.

Second, the Terms & Conditions should prohibit the Client from:

1. interfering with the Civil Contractor’s performance of the work; or,
2. attempting to unilaterally vary the scope or nature of the work.

Third, the Terms & Conditions should permit the Civil Contractor to:

1. suspend the work in response to the Client’s breach of any term of the agreement, such as its interference with the performance of the work; and,
2. terminate the agreement for the Client’s failure to remedy a breach, after providing seven days’ notice.

Are you a Civil Contractor? Do you use a generic template?

If so, get in touch today for a free initial legal consultation as to Terms & Conditions.