BuildLaw Issue 38 December 2019 | Page 14

benefit from this – including any expected lifetime of the works.
• The Contract provides that the Employer is required to obtain all permits, licenses and consents stated in the Employer’s Requirements to be its responsibility, and that the Contractor is required to obtain any others. The Employer is also responsible for allowing the Contractor access to the Site – which could be complicated in respect of tunnelling contracts affecting ground in the ownership of a number of different parties. It will remain important to ensure that the full jigsaw of permissions and consents is in place prior to work commencing, and that sufficient time is allowed for this exercise (as negotiations could be lengthy).
• The Contractor is required to take measures to limit nuisance to third parties but it is likely that in tunnelling projects third party interests will need to represented much more robustly than this. In particular, landowners consenting to tunnelling under their property are likely to require collateral warranties with clear undertakings as to the manner of working, ability to call upon the Contractor’s insurances and perhaps even rights to scrutinise and input into methodology, as well as indemnities in event of any loss being suffered. Additional contractual provisions are likely to be driven by discussions with the third parties themselves.
• Although an Advance Payment Guarantee is provided for, the Employer may wish to consider whether further comfort is required in respect of expensive tunnelling equipment or specialist materials. Where costly items are paid for in advance, ownership may be agreed to vest in the Employer as the item(s) is/are fabricated (before shipment/delivery). It is never possible to provide a 100% safeguard against supplier insolvency, particularly where dealing with foreign suppliers, but direct contractual links can assist. Seeking advice in respect of insolvency laws in the local jurisdiction may also be prudent.
ABOUT THE AUTHORS
Ian mccann partner, edinburgh
Victoria peckett partner, london
Christine worthington partner, glasgow
claudia russell senior associate, edinburgh
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