Procurement – Covid-19

Disputes prove costly for major projects

Conflicts over contract interpretation, design failings and changes in scope are plaguing major construction projects globally according to new analysis which found that, on average, costs claimed in disputes amount to more than a third of committed capital expenditure.

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Fraudulent construction firm Nobleread shut down

Building materials suppliers have been warned not to agree credit terms with new customers without first carrying out thorough background checks, after a fraudulent construction company was shut down.

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Plan to replace flagship retail building faces inquiry

Controversial plans to demolish and redevelop retailer Marks & Spencer’s Oxford Street store are being challenged by campaigners on environmental and heritage grounds in a Public Inquiry which got under way this week.

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Delay to rail infrastructure pipeline frustrates sector

Three years have passed since publication of the last and supposedly annual Rail Network Enhancements Pipeline, leading one trade body to suggest that uncertainty with future schemes is holding back both the supply sector and the economy.

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Contractor and its director sentenced for fire risk failings

A building contractor has been fined £600,000 following ‘serious and repeated’ failures to manage the risk of fire during work at a site in Essex. Its director has also been ordered to complete 100 hours of unpaid work and was fined £4200.

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Call for contracts to boost productivity on projects

Procurement has a critical role to play in tackling the causes of poor productivity on infrastructure projects according to an industry report which urges the use of contracts that encourage collaboration, promote continuous innovation and assign risk fairly.

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Alarm raised as sector distress continues to climb

Construction has the highest number of businesses described as being in ‘critical’ financial distress as a result of the uncertain economic outlook. Without imminent action, insolvencies are likely to rise further, warns one lawyer.

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Interserve fined for complacency over data breach

Interserve Group has been fined £4.4 million for breaching data protection law. The Information Commissioner’s Office – the UK’s independent regulator for data protection and information rights law – found that the construction company failed to put appropriate security measures in place to prevent a cyber attack.

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Australian dispute erodes Laing O’Rourke profits

Major contractor Laing O’Rourke has reported a £75.7 million hole in its finances, reflecting an adjustment to recoverable costs in relation to a disputed contract in Australia which was terminated in 2017.

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Council defends court challenge from terminated contractor

Administrators of an insolvent contractor have failed in an attempt to win £1.7 million in compensation following the company’s early termination on a project to construct Blackburn Bus Station, which led to the firm’s collapse.

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