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Infrastructure routemap: go with the flow(chart)

Guest editor Ian Stubbs of Pinsent Masons examines the government’s draft procurement routemap to try and see where we are going with infrastructure delivery. The key role of the contract has been bypassed, he argues.

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Legal terms explained: Insolvency

Insolvency has become an increasingly important issue in the construction industry as a consequence of the recession. A company is deemed to be insolvent when it satisfies one of the two tests under s 123 of the Insolvency Act 1986 (IA86). Section 123(1) of IA86, known as the ‘cash flow’ test, is met if a statutory demand for over £750.00, judgment or court order is unsatisfied or the court comes to the conclusion that the company is ‘unable to pay its debts as they fall due’.

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Dispute resolution – getting a grip

Regular contributor David Mosey fills our guest editor slot for the last time before retiring from Trowers & Hamlins after leading their Projects and Construction Group for over 20 years, to take up a professorship at King’s College, London, as Director of its Centre for Construction Law. He argues that facilitated negotiation and mediation under partnering contracts can be the best solution for dispute management.

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Reports from the courts: March 2013

Our regular round up of the court decisions of most interest to construction from Will Buckby and Ibaad Hakim of Beale and Company focuses on a case concerning liability for the failure of an under designed platform; and another where an adjudicator changed his mind.

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Reality checks a good idea

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his review of the JCT’s new guide to tendering procedure, which suggests some additions that could be made in the next Construction Act revision.

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PF2 – A new beginning for PFI?

Tom Pemberton and Pasquale Pisanelli of Beale and Company outline reforms to the private finance initiative, PF2, that are hoped to generate increased infrastructure investment. Although the new regime is in use for school building, doubts remain whether they will attract investment funds.

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Consistency on-demand or guaranteed?

Kirstin Bardel of Ashurst takes a detailed look at a recent Court of Appeal decision in relation to the differences between on-demand bonds and guarantees, and considers its implications for construction.

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Why collaborate?

Collaborative working is an industry holy grail, and much has been done to promote it, says Shona Frame of MacRoberts. But among the many success stories, there are some cautionary tales.

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Costs reforms may be much ado about nothing

New Civil Procedure Rules affecting costs in the Technology and Construction Court come into effect from 1 April. Hamish Lal of Jones Day says they may not have as big an impact as expected.

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Fun and games with FIDIC DABS

The operation of Dispute Adjudication Boards under FIDIC contracts is analysed by Michael Stewart of Pinsent Masons. Jurisdiction and enforcement issues are increasingly arising despite their being apparently straightforward, he warns.

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