A recent case involving Muller (the dairy product manufacturer) has highlighted the risk of the “start now, sign later” approach to contracting which has been part and parcel of the construction industry’s approach to projects for a long, long time.

 The case itself involved a fairly familiar situation whereby the parties involved, with all good intentions, decided to begin work on a project pursuant to the terms as set out in a “letter of intent” rather than entering into a detailed, formal, and legally binding contract.

 The conversations on site will no doubt have been similar to those which everybody in the construction industry has at least overheard and, more likely, been party to and will have included comments such as: “let’s just get on with it, we all know what needs to be done”; and, “you know what lawyers are like, it’ll take forever if we wait for them.”

It is however not uncommon for it subsequently to transpire that whilst everyone may have known what was to be done, no-one quite knows what to do when what is done doesn’t work or is delayed and all involved are left having to try and close the stable door well after the horse has bolted.

 The moral of the story must be “a stitch in time saves nine” (and find yourself a lawyer who understands construction and is capable of working to tight deadlines). Funnily enough, I know just the team…..