Payment for offsite goods and materials: the Scottish perspective^*

* An earlier version of this paper presented to the ARCOM 2015 Conference: Trushell, I. and Morrison, S. (2015) Ownership of materials: A Scottish/English dichotomy. In: Raiden, A. (Ed.) and Aboagye-Nimo, E. (Ed.), Proceedings 31st Annual ARCOM Conference, 7–9 September 2015, Lincoln, UK. Association of Researchers in Construction Management, 63–72. The authors were invited by the editors of Construction Management and Economics to develop the paper for publication in this journal.

Abstract

Materials are a critical element within the construction industry yet- the conditions and legality surrounding their ownership remains an area of uncertainty. The difficulty in ascertaining ownership is often found in the instances of payment, delivery and complex contractual relationships. Additionally, the nature of the construction industry whereby raw materials are purchased within a supply chain and are incorporated into the fabric of buildings or goods often creates further confusion. The importance of ownership is most apparent in the instance of disputes or insolvencies, both of which are regular occurrences within the construction industry and in the management of a project regarding cash flow and programme. To inform the position and stance of Scots Law in relation to ownership of materials it is necessary to evaluate current law regarding ownership of materials in Scotland through the undertaking of a literature review which establishes the prevailing legal structure. Conclusions and recommendations propose that parties of a construction contract, for which Scots Law is applicable, are aware of current law surrounding the intricate matter regarding ownership of materials in Scots Law

Keywords:

• Contract law
• insolvency law
• liquidation
• materials
• ownership
• payment
• sale of goods
• Scotland

Notes

* An earlier version of this paper presented to the ARCOM 2015 Conference: Trushell, I. and Morrison, S. (2015) Ownership of materials: A Scottish/English dichotomy. In: Raiden, A. (Ed.) and Aboagye-Nimo, E. (Ed.), Proceedings 31st Annual ARCOM Conference, 7–9 September 2015, Lincoln, UK. Association of Researchers in Construction Management, 63–72. The authors were invited by the editors of Construction Management and Economics to develop the paper for publication in this journal.