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Construction update

Anna Stillman considers when one can imply a term into a contract, adjudicator bias, an update on BPF and CIC publications and the proposed health and safety reforms

6 February 2012

Implying contract terms

As 2011 drew to a close, the Technology and Construction Court was called upon to decide in Leander Construction Ltd v Mulalley and Company Ltd [2011] EWHC 3449 (TCC) whether a term could be implied into a sub-contract obliging the sub-contractor to proceed with its works regularly and diligently. This request from the contractor was made despite the fact that a failure by the sub-contractor to proceed regularly and diligently gave the contractor the express right to terminate the sub-contract.

Mr Justice Coulson held that it was not necessary to imply this term, and, importantly, that precedent was clear in establishing that where a sub-contractor is required to complete its works by a set date no such term could be implied.

In this case, Leander (the sub-contractor) had been employed by Mulalley to carry out certain groundwork, drainage and concrete frame works at a development in London. Leander was employe...

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