Procurement – Covid-19

News in Brief: 28 May 2021

A survey seeking views to inform the development of a new standard firm joint venture agreement to help save firms time and cost when establishing partnerships has been launched by the Institution of Civil Engineers.

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Insolvency Service to receive new investigative powers

New legislation to help prevent directors of dissolved companies from setting up ‘phoenix’ businesses shortly after liquidation, leaving debts unpaid – an issue which lawyers say is rife in construction – is proposed in a new Bill which would hand additional powers to the Insolvency Service.

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Botched lifting operation lands large fines for firms

Two construction companies have been fined after a worker was seriously injured when part of an air conditioning plant fell on him during a lifting operation carried out as part of a large roof refurbishment project in Bromley High Street.

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New contracts underpin rail reforms

Radical proposals to overhaul the operation of UK railways including bringing an end to the current franchising system and modernising contracts to increase competition, reduce costs and attract innovation have been set out following a ‘root and branch’ review of the sector.

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Price inflation puts firms under threat

Expected price inflation stemming from material shortages in the construction sector is set to pile on additional risk for firms entering into new contracts, and could contribute to further insolvencies, it has been suggested.

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Government not monitoring project bank account use

The Cabinet Office is not recording information on the use of project bank accounts across government contracting authorities despite last year’s Construction Playbook requiring their use where appropriate on projects.

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Planning, procurement and building safety laws announced

Lawyers and sector commentators have reacted to this week’s Queen’s Speech which set out plans to take forward new laws aiming to simplify public sector procurement, modernise the planning system and improve building safety among the government’s agenda for the year ahead.

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Rise in contractual disputes anticipated by contractors

Over half of construction contractors are expecting a greater number of contractual disputes to arise after Covid according to the latest market report from consultant Gleeds, which also highlights escalating issues around the supply of materials on projects.

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More rigour urged earlier in project development

Government departments and agencies need to be “far more rigorous” in how they take forward major projects from earlier on in the development process to help ensure timely delivery and value for money, the Infrastructure & Projects Authority’s chief executive has told a committee of MPs.

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Site boss jailed over unreported excavator injury

A builder has been imprisoned for 24 weeks after he failed to report a serious incident at a construction site he was in charge of, which resulted in a worker losing one of his legs.

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