Construction Law: April 2017

Editor’s comment    
Out with the old normal – in with the new? 
Editor Nick Barrett says evidence that government efforts to improve procurement are working should be welcomed; but old Whitehall practices might yet scupper their efforts.

News
Our news round up includes launch of a new suite of contracts including a Professional Services Agreement; a warning that government procurement reforms might fail if ministerial attention wavers; and a £100 million compensation bill arising from a botched nuclear procurement.

Legal terms explained  
James Doe and Emma Kurtovich of Herbert Smith Freehills explain what is meant by the prevention principle.

Guest editor
Latent Damage Act 1986 – time for reform
Guest editor Marie-Therese Groarke of Withers argues that the Latent Damage Act is largely redundant in most negligence cases involving latent defects, and either it or the law relating to economic loss is in need of reform.

Legislation state of play table
Our regular update of the progress of legislation as it passes through the UK and EC legislative systems comes from Clyde & Co. Richard Kniveton and Tim Saxon comment on the recent housing White Paper.

Reports from the courts 
Our regular round up of the court decisions of most interest to construction from Andrew Croft and Simii Sivapalan of Beale & Company LLP includes a decision highlighting that payment notices need to be free from ambiguity; and another confirming a trend for courts to adopt a common sense approach to liability limiting clauses.

Contracts monitor
Valuation no invite to creative thinking
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of the JCT Minor Works Building Contract, turning to the procedure for payment applications.

CL guides
CL Guide to: NEC3 (Part 2)
This second part of our guide to the NEC Engineering and Construction Contract (ECC), by Jon Gaskell, a Legal Director at DLA Piper, focusses on key aspects of core cll 6 to 9, together with the dispute resolution options, secondary option clauses and contract data.

Payments
Court expands on pay less issues
Andrew Croft and Stephen Jones of Beale & Company Solicitors LLP review how the courts view payment and pay less notices in the light of recent decisions. The overall picture will be looked at when considering whether a notice is valid, they argue.

A trump card for employers
In the second of our articles concerning pay less notices Suriya Edwards of Geldards LLP analyses a recent case that helps legitimise employer friendly contractual terms, highlighting how employers can use pay less notices to manage cash flow.

Forecast
Expected legal and litigation trends in 2017
Charlie Thompson of Hardwicke looks into the crystal ball to make some predictions about what the rest of 2017 might hold for the industry’s legal picture. Much uncertainty lies ahead in several key areas, he warns.

Diversity
Pressure rises to increase diversity
How diverse is the construction industry as a workplace, ask Akin Akinbode, Sarah Beeby, Esther McDermott and Michael Wright of Dentons. Pressure is mounting to increase diversity with new regulations on gender pay in force from April 2017.

Insurance
Inherent defects insurance popularity growing
Inherent defects insurance has never been popular in the UK but, says insurance expert John D Wright of JD Risk Associates, the traditional view of it as just an onerous and unnecessary cost is changing.

Alternative dispute resolution
Mediation – an introduction
Our latest alternative dispute resolution article from Clyde & Co’s Christopher Leadbetter explains the benefits of mediation.