Certainty is good for business. Ireland has now produced a series of standard contracts for use in public construction and engineering projects.
Jerry Yang of Yahoo did not need to read the judgment of the House of Lords in Walford v Miles (1992) 2 AC 128 to appreciate the principles of commercial negotiations.
To hand over the key beforehand is to hand over possession. If a purchaser gets possession before parting with the purchase money there is a great temptation to evade or delay the handing over of the purchase money, at least until it suits the purchaser.
It seems my post on bidding for public contrcts in the construction industry missed one element – bid-rigging.
Who, in the name of goodness, does the UK Roads Authority use to write its contracts?
In truth, neither the contractors nor the public authorities seeking tenders genuinely know what the costs of such projects are; the tenders are guesses.
These contracts are very valuable. They allow the person to whom the contract is awarded to, at the very least, pay the wages of the staff of the successful tendering company, say, during slack industry trading periods.
The judgment did not deal with the liability of the insolvent contractor, who, the evidence showed, had entered into a loan agreement with the architects, following the awarding of the work to the contractor, for the loan of £10,000 to them, without the knowledge of the Employer/Plaintiff.