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

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 cashflow 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.