Editor’s comment
Zeroing in on zero retentions
Editor Nick Barrett says the chances of ending retentions could be higher than they have ever been, but the price would be a renewed industry focus on performance.
News
Our news round up this month includes an update on the on-going investigation into Carillion’s collapse; evidence that the construction industry is firmly behind a Bill to reform damaging payment practices; and a landmark prosecution under s 7 of the Bribery Act.
Legal terms explained
David Nitek and Michael Sharp of Herbert Smith Freehills LLP explain the term ‘smash and grab’ adjudication.
Guest editor
Game players need to be match fit
Reform is in the air against a background of government consultations and the Carillion collapse. Guest editor Cecily Davis of Fieldfisher warns that if the industry is to be ‘match fit’ in the post Brexit world the government might take the opportunity to intervene on retentions.
Legislation state of play table
Clyde & Co LLP provide our regular update on the progress of legislation affecting construction as it passes through the UK and EC legislative systems. Anna Bonnington provides a comment on the National Infrastructure Commission’s annual monitoring report.
Reports from the courts
Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP review the most recent cases of interest to construction including one highlighting that rights and remedies in respect of insolvency can apply after termination by a contractor for breach of contract; and another underlining from what point limitation periods start to run from.
Contracts monitor
Sensible suggestions for pre-qualification
Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of JCT’s Tendering Practice Note. Some easy measures to help prevent collusion have been overlooked, he says.
CL guide
CL guide to: Striking a balance on liquidated damages
The latest article in our Guides series comes from Jennifer Price of DLA Piper who examines liquidated damages.
Expert witnesses
Expert evidence and construction claims
Digby Hebbard and Thomas Edwards of Fladgate review recent court cases that highlight the consequences of failing to manage expert witnesses adequately. Be careful in selection of experts as well, they warn.
Private finance
Off balance sheet and the Mutual Investment Model
Suriya Edwards of Geldards LLP examines the Welsh government’s Mutual Investment Model for bringing private finance into public sector projects. Sustainability requires a strong focus, she finds.
Contracts
Ingredients for a binding contract
Kwadwo Sarkodie of Mayer Brown analyses the ingredients that must be present for a legal contract to be formed. Even informal chats can turn out to be legally binding he warns.
Cash retentions
Cash retentions post Carillion
Stephen Radcliffe of Walker Morris LLP considers the implications of the Carillion collapse and what it means for the practice of cash retentions. A Private Members’ Bill might provide impetus for long awaited reform of retentions.
Insurance
The supply chain interruption risk
Insurance expert John D Wright of JD Risk Associates explains what the insurance market can provide to protect against the risk of consequential loss and supply chain interruption. Case law proves the wisdom of ensuring cover fully matches requirements.
Alternative dispute resolution
The end of ‘smash and grab’?
In our latest alternative dispute resolution series article Chris Kerr of Clyde & Co LLP asks whether ‘smash and grab’ adjudications have a future following a recent ruling.