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2016 – bonds and warranties featured in Scotland

Shona Frame and Frances Garratt of CMS review the year in Scotland. A number of significant legal and legislative developments included court decisions affecting performance bonds and collateral warranties, and legislative support was given to project bank accounts.

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Knock for knock in offshore construction contracts

Katherine Doran of Holman Fenwick Willan LLP cuts through the complexity of how ‘knock for knock’ provisions work in offshore construction contracts, giving a breakdown of a typical clause to show how the various elements fit together.

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Concurrent delay outlook uncertain

Aidan Steensma, Of Counsel at CMS, examines the implications for approaches to concurrent delay of a recent decision made in the Commercial Court. There is still no sign of agreement between construction specialists about which approach to favour.

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Risk management for architects and engineers

Management of risk cannot be ignored just because an insurance policy is in place, warns insurance expert John D Wright of JD Risk Associates, in this guide to how to approach proper risk management.

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Solvency doubts no reason for a stay

In our latest alternative dispute resolution series article Jamie Calvie of Clyde & Co analyses a recent decision where a contractor’s worries about a client’s ability to meet its final account obligations proved to be no justification for staying an adjudication award.

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The Pre-Action Protocol for Construction and Engineering Disputes

On 14 November 2016 the second edition of the Pre-Action Protocol for Construction and Engineering Disputes came into force (Protocol). The Protocol is designed to encourage parties to exchange information early in proceedings and consider alternative dispute resolution (ADR) by setting certain standards which the parties are expected to observe.

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New and proposed legislation: State of play table 216

This table, prepared by Clyde & Co, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to EU Directives and UK legislation, the table includes notes highlighting discussion papers issued by both government and non-government organisations, and commentary on the latest developments.

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Legal terms explained: Assignment

An assignment is the transfer of an interest from one party (the assignor) to another (the assignee). Assignment allows the assignor to transfer the benefit of a contract to the assignee. For example, the tenant of recently built office premises may transfer the benefit of collateral warranties from the tenant to a subsequent tenant.

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Is Lulu something to ‘Shout’ about?

Guest editor Anthony Willis of DLA Piper foresees revived attention being given to the apparent conflict between late payments legislation and the Construction Act following a recent TCC case.

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Reports from the courts: December 2016

Our regular round up of court decisions of most interest to construction comes from Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP, including a case involving the NEC3 sub-contract and a breach of natural justice; and one that again highlights that an adjudicator’s decision can be upheld regardless of errors of fact or law.

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