By J. Roger Knowles
Procurement -- Tenders and bidding -- layout -- Letters of motive -- Programme -- Delays and hold up research -- Extensions of time -- Liquidated/delay damages -- adaptations -- Loss and expense/additional expense -- check -- sensible crowning glory and defects -- Rights and treatments -- Adjudication
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Extra info for 200 contractual problems and their solutions
6. 7. Six tenders were received, of which J&A Development in the sum of £1,074,982 was the lowest. A decision was then made, following discussions between the architect and Edina, that meetings should be held with each of the three contractors who had submitted the lowest tenders, to see if their tender prices could be reduced. The meetings took place, at which the tenderers were invited to reduce their tender amounts. Two of the contractors agreed, but J&A Development refused. Kylen Construction, who had produced the second lowest tender, agreed to reduce its price by £25,000 and was awarded the contract.
The case seemed to have been a pyrrhic victory for Mentmore. In this case, Fitzroy Robinson named Mr Blake as being the person who would be employed on the project, knowing full well that he was due to leave his employment with the company. The court held this to amount to fraudulent misrepresentation. This is not always the case, as quite often personnel named in the bid will leave after the contract has been entered into and their name has been submitted in good faith. Where personnel are named in the contract, it normally states that if they are not available, then a suitably qualified and experienced alternative will be found.
Are they enforceable, or, as they have not been included in the concluded contract, are they non-binding? This was the subject of a dispute which was referred to the House of Lords in the case of Chartbrook Ltd v. Persimmon Homes Ltd (2009). The parties to the dispute involved a developer, the defendant, and a claimant who sold them land for development. The 14 200 Contractual Problems and their Solutions intention was for planning consent to be obtained by the developer for the construction of mixed residential and commercial premises which were to be sold on long leases.