Judge sets deadline for cash discount

Article Abstract:

In a UK building contract case, Team Services versus Kier Management and Design one of the main points was the meaning of 'cash discount'. The subcontractor Team had submitted a tender for nearly 15 million pounds sterling to Kier the management contractor which included a 2.5% cash discount. Kier argued that the discount should be allowed as a date had not been stipulated whereas Team stated that a discount could only be made if payment was made on time. The judge held that Kier was not entitled to the 2.5% cash discount and that discount did not have to be tied to a date.

Kier Management and Design, Team Services

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Judgement ways

Article Abstract:

The popularity of arbitration as opposed to litigation is increasing in the UK construction industry because most building contracts request arbitration. Arbitration may be more expensive than litigation because costs for the arbitrator, judge and court room are expensive whereas in litigation they are free. In litigation a definite date is given and the system has more impact. Arbitration only works if the dispute is capable of negotiation and because parties want a settlement; it is not suitable if the defendant is suing more than one party.

Arbitration (Administrative law), Administrative arbitration, Costs (Law), Legal fees

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Law lords champion arbitration remit

Article Abstract:

The UK House of Lords' rejected Eurotunnel's appeal against contractor TML on Jan 21 1993. TML threatened to discontinue work unless Eurotunnel paid for a variation order made in 1987. Eurotunnel appealed to the High Court to prevent TML's threat. The Eurotunnel contract incorporates internationaal trade laws. The House of Lords decision to reject Eurotunnel's appeal shows that a company who wishes to avoid arbitration procedures by using the courts will be refused.

Engineering services, Eurotunnel PLC, TML/Stern Engineers

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