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Construction Law: November 2023

Editor’s comment
Public Procurement isn’t working
Editor Nick Barrett finds a report from think tank Reform saying that public procurement isn’t working as it should. Public confidence in the efficiency of the state as a whole is also weak, researchers found.

News
Our news round up reports on water companies in England and Wales who plan what is said to be the largest ever investment in the sector; whistleblowers alleging that HS2 Ltd deliberately covered up its escalating costs to prevent government from cancelling the project; and on government dropping legal action against five former Carillion non executive directors hours before what was being seen as a test case was due to start.

Legal terms explained
Isabel Picton-Turbervill of Herbert Smith Freehills LLP explains legal aspects of value engineering.

Guest editor
Letters of Intent – how to tame the beast
Guest Editor Laughlan Steer of Russell-Cooke LLP laments the all too common approach to letters of intent that is prevalent in the industry. They should be straightforward, but seldom are because best practice is often ignored.

Legislation state of play table
Our regular update of the progress of legislation and government procurement related developments compiled by Alignment Media.

Reports from the courts
Our regular round up of the court decisions of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who report on a case that warns parties to avoid linking final dates for payment to the submission of invoices/notices; and one that cautions parties about commencing a ‘true value’ adjudication until outstanding payment obligations have been complied with.

Analysis
Construction insurance: what to look out for
There were significant developments in the construction industry this year affecting the insurance outlook which Alan Stone, Tom Green, Zack Gould-Wilson and Rebecca Phipps of RPC examine for clues to what to expect in 2024.

CL guides
Performance security
Our regular guide to key aspects of construction law from DLA Piper has Jennifer Price-Thomas explain various types of performance security.

Building safety
Recent building safety cases: the courts are getting stuck in
Sarah Alexander of Dentons UK and Middle East LLP reviews recent court decisions relating to the growing number of building safety related cases since the Building Safety Act 2022 came into force. Developers face prosecution for failing to comply with improvement notice deadlines, one case confirms.

Adjudication
Serial Adjudication in 2023: some like it hot
Karen Gough of 39 Essex Chambers analyses why after over 25 years of the adjudication regime the courts are still kept busy with issues arising from serial adjudications. Claiming parties like them, but they are the bane of adjudicators and judges she says.

Adjudication in Ireland
Enhanced status helps keep the Irish adjudication bar high
Stephen McKenna and Nouman Qadir of Quigg Golden analyse two recent decisions in Irish construction law handed down by the High Court. Adjudicator’s decisions have ‘enhanced status’ in the Irish courts compared to the UK, they point out, and the courts have a track record of supporting the intentions of the legislation.

Party walls
Party walls – we are all affected
Dr Laura Lintott, Visiting Fellow at King’s College London and Supervisor for undergraduates in land and private law at the University of Cambridge, writes in her capacity as a recent PhD graduate from the University of Cambridge on the topic of her thesis: Party Wall Disputes: Legal Coherence and Dispute Management.

Insurance
Insurance and Consequential Loss
Insurance expert John D Wright of JD Risk Associates examines how insurers regard claims for consequential loss. Claims for economic loss give rise to many disputes, he warns.

Alternative dispute resolution
Time to mandate adjudication pupillage?
Caroline McDermott of Turner & Townsend and Kirsti Olson of Dentons UK and Middle East LLP suggest pupilage as one way to increase the supply of adjudicators.

Safety body calls for reversal of health and safety cuts

The Royal Society for the Prevention of Accidents has called on the government to reverse long term Health and Safety Executive budget cuts to combat the death toll in construction from falls from height.

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Major infrastructure planning reforms announced by government

Chancellor of the Exchequer Jeremy Hunt has announced a Connections Action Plan in his Autumn Statement to tackle barriers in the system of infrastructure planning that are leading to long delays in connecting new generating capacity to the national grid.

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JCT Contract Administration forms released

JCT has released Construction Administration Model Forms for use with the 2016 edition of its Standard Building Contract, Design and Build Contract, and Intermediate Building Contract families.

To read more of this and every other news story on this site, please log in with your Construction Law membership account details. If you don't have an account, you can get free access to the news on this site and receive a free newsletter on Fridays by creating a Newsletter account. See the panel to the right.

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MPs have no confidence in hospital delivery promises

The Public Accounts Committee (PAC) says in a report that it has no confidence government will deliver on promises made in 2020 to build 40 new hospitals.

To read more of this and every other news story on this site, please log in with your Construction Law membership account details. If you don't have an account, you can get free access to the news on this site and receive a free newsletter on Fridays by creating a Newsletter account. See the panel to the right.

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School buildings deterioration unacceptable and alarming, say MPs

The lack of basic information from the Department for Education (DfE) on the concrete crisis in schools is both shocking and disappointing, the Public Accounts Committee (PAC) warns in a new report.

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Defective cradle leads to £240,000 in safety fines

Two men working on a residential tower under construction in London were said to be lucky to have escaped death when a defective cradle they were in fell about 90 feet.

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Record fines for fire risks found at London house

A landlord and a property management company have been given record fines after being found guilty of putting tenants at risk following a Kensington and Chelsea Borough Council investigation and prosecution.

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Edinburgh council responds to scathing Tram Inquiry report

The City of Edinburgh Council has published its response to the Edinburgh Tram Inquiry and confirms that it is still considering what, if any, legal action to take against its employees or Arms Length External Organisations (ALEO) involved in the project.

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Legal delays lead to £24 million road cost rise

Legal challenges to the £950 million A428 Black Cat to Caxton Gibbet road scheme have let to Skanska being paid an additional £24M by National Highways.

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Landbanks under competition regulator’s spotlight

The Competition and Markets Authority (CMA) has put two ‘working papers’, on housing developer’s landbanks and on planning, out to consultation for feedback on its assessment of the use of landbanks and how new homes are delivered, and on how planning rules may be impacting competition.

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