Fully appreciate the various legal frameworks which impact on the construction sector.

Assignment Brief

Assignment 1 Law Report

Learning Outcomes:

LO1 Fully appreciate the various legal frameworks which impact on the construction sector.

LO2 Demonstrate an understanding of the principles of law as they relate to the construction industry; property and real estate.

The construction industry is a diverse sector consisting of large companies and micro businesses. The sector also encompasses a number of professions ranging from construction managers, quantity surveyors, building surveyors, architects, engineers, etc. Most companies large or small must operate within the system and framework of English Law. You are currently working for a small company and you have been asked to write a report that address some of the issues outlined in the tasks below

Task 1 (Introduction to Legal framework)

Investigate and discuss using practical examples where possible how the English Legal system impacts on the construction industry in England (maximum 300 words). Note this task will form the introduction to your report.

Task 2 (Case Study 1 contract law)

The main contractor Adler Construction Ltd are constructing a commercial building. The main contractor requires a sub-contractor to supply and install a ventilation system. Four sub-contractors have been invited to tender for the installation of the ventilation system. One of the sub-contractors Kirk Ltd, have returned their tender in the form of a letter stating the price of the work and stating that they will do the work in accordance with their terms and conditions printed on the back of the letter.

The contract has already started. Therefore, the main contractor requires the subcontractor to start as soon as possible. The sub-contractor is informed by telephone to 14 start the work. The work was started and finished. On completion the ventilation did not work due to a number of faulty parts.

Task 3 (Case Study 2 Law of Tort)

An old and disused mill has a manmade pond to the rear. The pond is 18m higher than an old school house and has recently being filled with water again with a view to using it as a fishery. The old school house has been converted into four properties including four garages that are an integral part of the building. The properties have been flooded with water shortly after the mill pond was filled with water. The owners of the four properties are concerned about the flooding and have called on your company to investigate the situation and give advice in relation to who may be liable for the situation.

1. Discuss the above situation making reference to appropriate case law. (Maximum 600 words)
2. Write a letter to the client advising and recommending the course of action they should take.

Present the above in the form of a formal report with a front page, contents page, terms of reference, introduction, conclusion, recommendations and appendix at rear which can include the letter related to case study 1,2.

Sample Answer

Law Report: Legal Framework and Case Law in the Construction Industry

Module Title: Construction Law

Terms of Reference

This report investigates the impact of the English Legal System on the construction industry and analyses two legal case studies related to contract law and the law of tort. The report will draw on relevant legal principles and precedents to advise on legal liabilities and appropriate actions.

Introduction

The construction industry in England operates within a complex legal framework that governs every aspect of its operations, from contract formation to liability for damage. English Law is derived from statutes, common law (case law), and European legislation. This report will first outline how the English Legal System influences the construction sector, followed by the analysis of two real-world case scenarios: one based on contract law and the other on the law of tort.

The English Legal System and Its Impact on Construction 

The English Legal System is primarily composed of civil and criminal law. In construction, the most relevant areas are civil law, particularly contract law, tort law, employment law, and planning and environmental regulations.

Contract Law governs agreements between clients, contractors, and subcontractors. It ensures that all parties are bound by legal obligations. For example, when a contractor enters a JCT (Joint Contracts Tribunal) contract, they are legally required to complete work to agreed standards and timescales.

Tort Law in construction deals with negligence or damage caused to property or individuals due to construction activities. For instance, if a scaffold collapses due to improper erection and injures a passerby, the contractor can be held liable under the tort of negligence.

Health and Safety Legislation, such as the Health and Safety at Work Act 1974, ensures construction sites are safe for workers and the public. Failure to comply can result in criminal prosecution.

Planning laws, such as those enforced under the Town and Country Planning Act 1990, influence where and how buildings can be constructed.

Employment law regulates contracts of employment, discrimination, and wage laws, ensuring fair treatment of workers in the construction sector.

In summary, the English Legal System provides a structure to manage rights, responsibilities, and risks across the construction industry, promoting fairness, safety, and accountability.

Task 2: Contract Law Case Study – Adler Construction Ltd and Kirk Ltd

Issue

Adler Construction Ltd appointed Kirk Ltd as a subcontractor to install a ventilation system. Kirk submitted a tender letter with their terms and conditions printed on the back. No formal contract was signed, but they were instructed verbally to begin work. The system failed due to faulty parts.

Legal Concepts

This scenario raises legal concerns under contract formation and acceptance, and implied terms. The critical issues include:

• Was a valid contract formed?

• Whose terms and conditions apply?

• Is Kirk Ltd liable for faulty work?

Continued...