Procurement – Covid-19

Payment practices worsening in industry, survey shows

Over three quarters of firms in construction believe payment practices have either worsened or failed to improve in recent years according to an industry survey, with legal disputes cited among the most common impacts of late payments on businesses.

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Investigation ongoing into fatal power station collapse

Possible corporate and gross negligence manslaughter offences are still being investigated five years after the partial collapse of Didcot Power Station, in which four people died.

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Rogue contractor sentenced after dangerous demolition

A north west contractor has been handed a suspended prison sentence after police had to stop him from creating havoc during dangerous demolition work at the site of a former medical centre in Blackburn.

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Government to increase scrutiny of contract underbidders

Firms that submit unrealistically low tender prices for public sector construction contracts will be subject to “detailed interrogation” as part of a Government drive to end the practice of underbidding in the sector, a senior civil servant has said.

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Views sought on professional indemnity insurance crisis

Construction companies are being asked to participate in a major review of the industry’s growing professional indemnity insurance crisis, with rising premiums and difficulty obtaining cover identified as key barriers to Covid recovery.

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Cladding firm misled product regulators

Arconic’s president has admitted the firm gave a “misleading half truth” to British product regulators when applying for a fire safety certificate for the cassette form of its Reynobond PE cladding product, which went on to be installed at Grenfell Tower.

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Chief Inspector of Buildings appointed

Establishment of a new Building Safety Regulator to oversee the safe design, construction and occupation of high risk residential buildings in the wake of the Grenfell Tower fire has taken a key step forward with the appointment of a Chief Inspector of Buildings.

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Costain agrees settlement over road project delays

Costain has reached a settlement with the Welsh Government in a dispute over additional costs incurred in the delivery of the A465 Heads of the Valleys road construction project.

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News in Brief: 19 February 2021

Concerns that project risks are still not being managed effectively enough on the heavily delayed and over budget Crossrail programme have been set out in a report by the London Assembly.

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Sector reports confusion over liability for pandemic impacts

Confusion remains over who takes responsibility for Covid related delays and additional costs on projects, with a third of respondents to an industry survey reporting that their contracts were not fit to address the effects of notifiable pandemic events. Lawyers say disputes are on the rise but it is debatable whether this can be blamed on contract drafting issues.

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