Editor’s comment
‘New hospital’ design needs to be reconsidered
The promise made by former Prime Minister Boris Johnson in 2020 to build 40 ‘new hospitals’ by 2030 looked unlikely to be achieved at the time. Editor Nick Barrett comments on the National Audit Office’s progress report on those projects.
News
Our news round up features a ‘landmark’ planning decision by Secretary of State for Levelling Up, Housing and Communities Michael Gove that overturns a planning inspectorate approval; the banning of two former Directors of failed contractor Carillion; and the lunch of the Responsible Actors Scheme that requires residential developers to pay for building safety remediation work.
Legal terms explained
Our latest Legal Terms Explained article comes from Valerie Chee of Herbert Smith Freehills who examines what is meant by practical completion.
Guest editor
Contractor Insolvency and the potential impact on a construction project
Guest Editor Karen Morean of Devonshires says insolvent contractors rarely survive, whichever type of insolvency procedure is adopted. Things could get worse, and she warns that suppliers might demand larger up front payments and offer short payment terms to reduce the impact of main contractor insolvency.
Legislation state of play table
Our regular update of the progress of legislation and government procurement related developments compiled by Construction Law staff.
Reports from the courts
Our latest round up of the cases of most interest to construction from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP includes a judgment providing a rare example of the circumstances in which the courts may be minded to order a stay of execution; and another that provides a reminder of the importance of clear contractual drafting.
Analysis
Efficient project management an elusive quality
HS2 is never out of the news for long, having been subject to a long series of delays, cuts, redesigns and reductions in scope, and critical reports from various overseers of public spending. July saw two reports that have added to the criticism but done little to inspire confidence that anything will improve soon.
CL guides
Claims for time, loss and expense
Our latest Construction Law Guides series article comes from Abigail Holmes of DLA Piper who explains the complexities surrounding claims for time, loss and expense.
Contracts
The Construction Playbook and effective contracting: moving the dial from vision to reality
Andrew Croft of Beale & Co, with Anna Kettle and Helen Field of Atkins, warn that contracts are becoming more onerous and being used increasingly to shift risk, which does not deliver best value or best solutions. A new approach to contracting is demanded, which the government’s Construction Playbook points towards.
Why fluctuation clauses must now be a central feature in JCT contracts
Phil Caton of Aaron & Partners argues that against a background of high construction price inflation contributing to a rising number of contractor insolvencies, fluctuation clauses should be a central feature in JCT contracts.
Arbitration
Refinements and Reforms of the Arbitration Act 1996: Reforming Landmark Legislation
Vijay K Bange and Paul-Raphael Shehadeh of Duane Morris consider the likely impact of reforms and refinements proposed to the Arbitration Act 1996 following consultations. Proposed reforms represent a welcome update to this landmark legislation, they argue.
Payments
Timing and validity of pay less notices
Stephen McKenna of Quigg Golden analyses a case that highlights the importance of the timely sending of valid payment certificates and pay less notices. Paying parties under construction contracts should ensure that for any pay less notices it issues to be deemed valid, they must refer to respective payment cycles.
Insurance
Employer’s Liability and Disease Claims
Insurance expert John D Wright of JD Risk Associates examines issues surrounding employer’s liability insurance and disease claims, which have been a problem for many years and look like keeping the courts busy for years to come.
Alternative dispute resolution
Can one adjudication decision be set off against another?
A recent decision in FK Construction Ltd v. ISG Retail Ltd [2023] EWHC 1042 (TCC) provides a useful reminder that limited circumstances apply for set-off to arise in adjudication enforcement, as Millie Leonard and Amanda McGrath of Dentons UK and Middle East LLP report.