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Stephen Twaites writes an interesting article 'Doing it the conventional way'

August 03, 2015

In the recent case of Mears Limited v Shoreline Housing Partnership Limited[2015] EWHC 1396 (TCC) the Technology and Construction Court considered the good faith obligations in clause 10.1 of NEC3; estoppel by convention; and entire agreement clauses, quite a collection of issues, all in the context of a case that neatly illustrates the dangers of failing to agree a clear payment mechanism.

Shoreline entered into an NEC3 contract (Term Service Contract conditions incorporating Option C, Target Contract with Price List) with Mears for on-going repairs and maintenance works. The Price List was unfortunately, however, incomplete. The parties were aware of this problem and, although they did not amend the terms of the contract, they agreed a solution involving a system of composite codes in order to deal with the Price List’s inadequacies.

 

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