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Legal terms explained: Prolongation Costs

Prolongation costs are typically claimed by a contractor against an employer where the completion of a project has been delayed by the employer or an event at the employer’s risk (an ‘Employer Risk Event’), and the contractor has incurred additional costs and/or loss that it would not otherwise have incurred.

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Building Safety Act 2022: where are we now?

Guest Editor Tim Seal of Ridgemont examines where we have got to with building safety. The picture is complex and the outcome far from predictable, he argues.

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Reports from the courts: May 2023

Our regular round up of the court decisions of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP who examine a case highlighting the risks of contracting with companies with parlous finances; and an appeal court ruling that shows the value of careful drafting of dispute resolution provisions.

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Bond calls: the essential cocktail of considerations – provided shaken, not stirred

Bond markets have been in upheaval recently, with knock-on impacts on decisions on whether to make or defend calls on performance security on construction projects. Louise Woods, Ciara Ros, Jarrod Gutsa and Lauren-Emma Parrott of Vinson & Elkins examine the issues.

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Construction Law Guide to: The Construction Act

In our latest CL Guides series article Jess Tierney of DLA Piper explains why it is important to understand the Construction Act.

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Adjudicator took too narrow a view of jurisdiction

Stephanie Geesink, Of Counsel, and Dom Turner-Harriss of Watson Farley & Williams LLP examine a case where the court decided that the adjudicator had taken too narrow a view of their own jurisdiction. Natural justice had also been breached.

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Consequences of entering into a contract with a dormant company

Stephen McKenna of Quigg Golden Limited (who acted on behalf of WRB (N.I.) Limited in these proceedings) analyses a case which highlights the consequences of entering into a contract with a dormant company and demonstrates that Courts are likely to enforce an adjudicator’s decision by way of a refusal to issue a stay of execution.

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Contract management best practices to limit the risk of disputes

In the second part of his article on contract management best practice Guillaume A Hess of King & Spalding says that getting the contract right at the outset is key, and argues that introducing collaborative processes is an effective disputes risk reduction strategy.

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Beware of average meanings

Insurance expert John D Wright of JD Risk Associates examines what the word “average” means in insurance policies. Insurers and brokers might offer guidance, but professional advice should be sought, he warns.

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