Procurement – Covid-19

PFI disputes threat as deals near end

Public contracting authorities risk underestimating the time, resources and complexity involved in managing the end of PFI contracts, and many are expecting to face formal disputes, according to the National Audit Office. A collaborative partnership approach will be key to a smooth transition, lawyers urge.

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Unsustainable contracts could be terminated, says Cabinet Office

Eventual exit from supplier relief arrangements applied in response to the Covid-19 crisis should soon start to be mapped out as the government moves into the recovery phase of its response to the pandemic, a new Procurement Policy Note says. Contract variation or even termination may need to be discussed if a contract is no longer seen as relevant or viable, it advises.

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Procurement fraud figures the ‘tip of the iceberg’

Close to a quarter of English councils have reported experiencing cases of fraud and corruption within procurement over a 12 month period, with the true scale of the issue expected to be far worse. Construction’s status as a high risk area is no new thing, one lawyer emphasises.

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News in Brief roundup: 12 June 2020

A tax law specialist has warned that a delay to the introduction of the new domestic reverse VAT charge for construction services due to the impact of Coronavirus on the sector may have an unforeseen consequence on businesses’ cash flow.

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Covid-19 fallout features in Construction Law’s June edition

The latest issue of Construction Law’s print journal is arriving on subscriber’s desks, packed with its unique blend of analysis and comment from leading construction lawyers and barristers on issues surrounding the impact of the Covid-19 pandemic on the industry’s contracts and disputes.

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Unique dispute resolution service launches in Scotland

A unique online service for the mediation and arbitration of construction disputes has been launched in Scotland by a group of six well respected dispute resolution specialists.

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Risk management focus prevents disputes escalation

Contractors, clients and other construction industry parties are increasingly engaging in risk management, dispute avoidance and early resolution strategies, a new report from law firm CMS says.

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Collaboration essential to solve Covid-19 disputes

Greater co-operation among parties to construction projects will be essential in avoiding, mitigating and resolving disputes arising due to the impacts of Covid-19, according to the latest Global Construction Disputes report from Arcadis.

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Roadmap to recovery strategy outlined

Proposed actions and imperatives to support the construction sector’s recovery from Coronavirus are detailed in a new strategy published by the Construction Leadership Council. Lawyers have welcomed this ‘Roadmap to Recovery’, which sets out a three phase plan to be delivered over the next two years and includes a call to minimise disruption due to contractual disputes.

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Contractors reform payment practices

Two major construction companies which were previously suspended from the Prompt Payment Code have been reinstated following improvements in payment practices to their supply chain. It will be important for employers and contractors to act responsibly under construction contracts in light of the current crisis, one lawyer warns.

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