Market outlook poor as contract awards put on hold

Construction firms awarded contracts worth a total value of £1.2 billion in March have since had these awards put on hold due to the impact of Covid-19, according to new market analysis.

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News in Brief: May 2020

New guidance on the application of the Building Regulations during the Covid-19 outbreak has been published by the Ministry of Housing, Communities & Local Government.

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Unions slam ‘dangerous’ health and safety guidance as sites start back

Construction sites are continuing to reopen across England and Wales and several major housebuilders are expected to resume work next month, according to Build UK. But the increase in activity has sparked concern from workers' union Unite over the implementation of social distancing rules.

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Scottish cash flow crisis bites

Scotland’s Construction Industry Coronavirus (CICV) Forum has set out a series of recommendations for the Scottish Government and clients to ease the cash flow crisis facing the country’s construction sector during the current pandemic. Efforts to resolve disputes consensually are needed, lawyers emphasise.

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Performance Bonds hit by Brexit and pandemic double whammy

Construction companies are reporting difficulties obtaining Performance Bonds from specialist insurers for public and private sector projects following project delays due to Brexit and now the Coronavirus crisis. Employers may have no choice but to start taking other forms of security, one lawyer says.

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Judges warn of post pandemic litigation deluge

Courts and arbitral tribunals could face a wave of commercial cases due to the Covid-19 crisis, with businesses invoking their inability to meet contractual obligations, a group of senior judges and legal academics has warned.

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Leadership council supports conflict avoidance initiative

A Conflict Avoidance Pledge designed to promote collaborative working and the use of early intervention techniques to resolve issues before they escalate into disputes has been endorsed by the Construction Leadership Council. 

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New regulations allow Damages Based Agreements in Scotland

New regulations relating to success fee arrangements in Scotland took effect on 27 April, which open the way for the use of Damages Based Agreements between businesses and solicitors in the country. DBAs could be an attractive option for cash short businesses pursuing litigation, according to legal experts.

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Sector calls for easing of lockdown on Scotland’s sites

Construction industry trade bodies have called on the Scottish Government to allow the reopening of the country's sites which closed following its recent instruction that all ‘non-essential’ works should be halted due to Coronavirus. Lawyers say there will almost certainly be an increase in disputes on account of the lockdown.

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Council asks for wind farm to be called in

Orkney Island Council has successfully requested that a planning application for a community wind farm project at Quanterness near Kirkwall be called-in by the Scottish Government for determination.

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