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Reports from the Courts: May 2025

Our latest round up of the court decisions of most relevance to construction comes from Andrew Croft, Ben Spannuth, and Daniela Miklova of Beale & Company Solicitors LLP, who look at a decision providing a useful reminder that assignments do not transfer liabilities to an assignee and that only the benefit of a contract is transferred.

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Government net zero commitment looks firm

Net zero plans, which will have major impacts on construction, are proceeding apace, despite a Conservative party rollback on its commitment to a policy initiated by a previous Conservative administration.

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Construction Law Guide to: Letters of Intent

Our latest CL Guides series article comes from Jennifer Price-Thomas of DLA Piper who examines Letters of Intent, offering guidance on common pitfalls to be avoided.

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Balancing justice and wellbeing while rethinking adjudication culture

Mike Waring of Knights warns that the adversarial nature of adjudication is taking a toll on the mental health of both lawyers and their clients. A culture shift is needed and adjudicators need to take a firmer hand in discouraging toxic behaviours.

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Contractor vs. Designer: Unravelling Design Liability Differences

Joseph Wittenberg of Turner & Townsend Contract Services warns contractors to be wary of trying to reduce design liability through contract clause wording. The courts will find that a term warranting a specific performance will trump any conflicting clause seeking to reduce the contractor’s design liability to reasonable skill and care.

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Limiting construction’s environmental footprint using climate conscious drafting

Alexandra Holsgrove and Corinna Whittle of TLT explain how climate conscious drafting of contract clauses can contribute to the climate change battle. Contracts as well as technical documents can include specific climate obligations.

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Court ruling could impact on professional indemnity insurance in Northern Ireland

Catriona McCorry of DAC Beachcroft, a Member of the Forum of Insurance Lawyers’ Professional Indemnity Sector Focus Team, outlines the key changes to building safety legislation in Northern Ireland introduced by the Defective Premises Act (Northern Ireland) 2024. Its impact on construction is highlighted by the recent group action in the case of Ulster Garden Villages & Others v Farrans (Construction) Limited & Others.

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Indemnity limits – a qualified promise

Insurance expert John D Wright explains how variations on aggregation causes in policies give rise to problems that look like continuing to keep the courts busy. Every word and phrase will have to be interpreted by the Courts, applicable to the facts of each case, he warns.

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Design liability in construction

Cheryl Ferguson of Dentons UK and Middle East LLP examines a recent TCC decision. Given the technical complexity involved, construction disputes of this nature can benefit from ADR approaches, she suggests.

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Legal terms explained: Adjudication and Insolvency

Adjudication is a speedy interim dispute resolution mechanism commonly used in the UK construction industry, as well as in certain other common law jurisdictions.

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