Construction Law: August/September 2018

Editor’s comment
Mediation proving its worth
Editor Nick Barrett welcomes the good news about the success of mediation in CEDR’s latest audit, and looks forward to better responses to the new diversity question in the 2020 Audit.

News
News featured this month includes details of a 20% rise in commercial mediations since 2016; a revelation that nine in 10 councils are failing to comply with regulations on 30 day payments; and a call to promote common procurement standards in construction including un-amended forms of contract.

Legal terms explained
David Nitek and Michael Sharp of Herbert Smith Freehills LLP explain what is meant by time at large.

Guest editor
Steady evolution in dispute resolution
Guest editor Shona Frame of CMS examines changes in attitudes towards dispute management and resolution after 20 years of the ‘Construction Act’. Clear evidence of a continuing move away from the industry’s traditional disputes culture can be seen, she argues.

Legislation state of play table
Clyde & Co compiled our regular update on the progress of legislation affecting construction making its way through the EC and UK legislative systems. Ana Bonnington and Henry Taylor comment on the proposed Heathrow airport expansion.

Reports from the courts
Our regular round up of the court decisions of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, including one highlighting the need for clear and broad termination provisions; and one confirming that oral agreements to vary contracts containing NOM clauses may not be effective.

Contracts monitor
Pay attention to footnotes
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his review of JCT’s Tendering Practice Note 2017. Non-price criteria for assessing best value throw up special problems, he warns.

CL guide
CL guide: contract administration
Our Guides to Construction Law series from DLA Piper continues with Yasmin Bailey analysing the role and responsibilities of the contract administrator.

Technology
Is there a role for blockchain and smart contracts in construction?
All industries expect to be transformed by the introduction of high profile new technologies like virtual reality, robotics and the Internet of Things. Davinia Cowden of CMS examines the role that less visible developments like blockchain and ‘smart contracts’ could soon be playing in construction.

Legislation
Buildings regulatory framework not fit for purpose
Barry Hembling of Fladgate says the Grenfell Tower disaster will force fundamental change on the construction industry, for example making clients, designers and contractors responsible for buildings throughout their life cycle. Detailed audit trails will need to be kept, providing evidence for prosecutions.

Employment
Employment practices come under the spotlight
Stephen Radcliffe of Walker Morris LLP reviews some recent employment developments and their implications for construction. Modern slavery, the gender pay gap and self-employed status are among the issues attracting increasing attention.

Arbitration
Trends in international arbitration
Rebecca Shorter of White & Case reviews the highlights of the 2018 international arbitration survey that reveals the procedure’s growing popularity for resolving disputes. A significant growth in using ADR in conjunction with arbitration has been found.

Insurance
Insurance warranties under fire
Insurance expert John D Wright of JD Risk Associates explains how the Insurance Act 2015 is having a marked effect on insurance contracts, in particular in relation to warranties. Trying to avoid liability merely because of a breach which had nothing to do with the actual loss claimed, will not be supported by the courts.

Alternative dispute resolution
Dispute boards as a means of alternative dispute resolution
Our latest alternative dispute resolution series article comes from Lois Putnam of Clyde & Co who examines the various types of dispute boards.