Construction Law Aug/Sept 2024

Editor’s comment
Construction needs longer public sector spending plans time horizon
Editor Nick Barrett welcomes recommendations in a new report that government introduces longer term planning horizons for public sector investments.

News
Our regular news round up focusses on a National Audit Office report into the costs of scaling back the HS2 project; the Environment Agency blaming years of under investment for water sector problems; and a £3 million fine for fatal accident safety failings.

Legal terms explained
Wei Qi Ng of Herbert Smith Freehills LLP examines what is meant by constructive acceleration.

Guest editor
Collaborative contracting in the UK construction industry
Guest Editor Mark Macauley welcomes the shift to collaboration from the industry’s traditional adversarial relationships. Some standard form contracts have some way to go however before they can be regarded as truly collaborative.

Legislation state of play table
Our regular update on the progress of regulations and legislation affecting construction and procurement compiled by Alignment Media.

Reports from the courts
Our regular round up of the judgments of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who look at an appeal ruling emphasising that the Building Safety Fund’s objective is ensuring that remediation works are completed ’as quickly as possible’, irrespective of recoveries from third parties; and a judgment reaffirming the courts’ reluctance to exercise powers under s44(3) of the Arbitration Act 1996 and to interfere with arbitral proceedings.

Analysis
Skill shortages and planning reform at the heart of problems facing infrastructure
Infrastructure procurement looked like enjoying a bit more favourable attention under the new government than it has since the introduction of the austerity programme of former prime minister David Cameron and his chancellor George Osborne some 14 years ago. Is this early promise already being eroded?

CL guides
Project Bank Accounts
Our CL Guide comes from Ross Campbell of DLA Piper who explains how Project Bank Accounts are being used. Public sector use is growing but the private sector might need the spur of legislation to promote their uptake, he suggests.

Adjudication
Clarity but not closure from landmark Supreme Court decision
Barry Hembling of Watson Farley & Williams LLP reports on a landmark supreme court ruling that provided the first strong guidance on what constitutes a construction contract for adjudication purposes. Unresolved issues might generate satellite litigation, he warns.

Limitation periods
The DPA 1972 landscape post Vainker v Marbank Construction
Georgia Whiting and Gabriela Trinanes of Ardmore examine a case that they find provides essential reading for those grappling with a range of issues thrown up by the extended limitation periods pursuant to the Building Safety Act 2022. Uncertainty remains over the scope and extent of extended liability under the Defective Premises Act 1972, they warn.

Artificial Intelligence
Technology in construction disputes – managing data and proving claims
Chiara Pieri and Zosia Zakrzewska of CMS update an article on Technology in Construction Disputes – Managing Data and Proving Claims (CL Vol 33 No 7), analysing the impact of AI, improved construction data management technology and new legal tech tools on construction disputes.

Remediation orders
The Heart of the Building Safety Act 2022: Leaseholder Protection
Chris Bryden and Daniella Adeluwoye of 4 King’s Bench Walk explain the impact of a decision from the First-tier Tribunal confirming that there is a discretion rather than an obligation to make a Remediation Order where the relevant criteria are made out, potentially making it harder for applicants to succeed in obtaining such orders. This is a new and developing area of law however, so watch this space.

Insurance
Causation – Friend or Foe?
Insurance expert John D Wright explains how the courts view the principles of construction and causation relating to disputes that come before them. Policy holders have often been caught out by nuances of wording in the past, but the courts have recently shown a more flexible approach.

Alternative dispute resolution
Adjudication and collateral warranties
In our latest Alternative Dispute Resolution series article Kirsti Olson of Dentons UK and Middle East LLP considers the implications for ADR arising from a landmark Supreme Court decision.