Construction Law: August/September 2016

Editor’s comment    
Brexit post major challenges
Editor Nick Barrett says there are major challenges ahead as the construction supply chain adjusts to a post Brexit procurement regime. The tasks ahead might be beyond the skills and experience of government and the industry, but the steep learning curve will have to be climbed.

News
Our regular news round up focuses on a report alleging that ineffective procurement and contracts create low productivity in the infrastructure sector; a Supreme Court split in a case affecting employers’ liability insurance; and a warning that clients and tier one contractors need to do more to eradicate unfair labour practices.

Legal terms explained
Jo Bindley of Pinsent Masons explains what is meant by the phrase ‘to proceed regularly and diligently’.

Guest editor
Hudson reflects evolving construction law
Guest editor Robert Clay of Atkin Chambers, one of the authors of the recently published 13th edition of Hudson on Building and Engineering Contracts, explains the changes behind the need for a new edition. There may be a need for a separate PFI section after disputes arising from these contracts reach the courts in the next edition due in 2021.

Legislation state of play table
Clyde & Co with our regular update of the progress of legislation affecting construction as it passes through the EC and UK legislative systems. Richard Kniveton provides a commentary on the government’s response to consultation on the National Infrastructure Commission.

Reports from the courts
In our latest court reports analyses Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP focus on a ruling concerning whether NEC3 Option W2 is consistent with the Construction Act; and another that highlights the importance of clear and Act compliant payment notice periods.

Contracts monitor
Provisions create problems
Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of RIBA’s Concise Building Contract and finds a raft of potential problems. More definitions would help.

Alliancing
A first for frameworks
Professor David Mosey of the Centre of Construction Law at King’s College London, explains the thinking behind the launch of the new standard form Framework Alliance Contract by the Association of Consultant Architects. FAC-1 is already being used on construction and infrastructure works as well as professional and environmental services.

Contracts
NEC3 – not to be left in the drawer
Will Buckby of Beale & Company Solicitors LLP warns that NEC3 users who think it is good enough to leave the contracts in the drawer are missing out on valuable project and risk management tools, as well as heightening the risk of disputes.

Stop, look and listen
Amending standard forms is usually advised against, but Ed Freeman and Rachel Chaplin of Clyde & Co argue that amendments can often make sense. Choosing the right contract from the outset though can avoid the need for many amendments.

Liability
Decennial liability creates unfamiliar risks
The State of Qatar’s construction market is attracting a lot of interest with a large programme of work related to hosting the 2022 World Cup. Andrew Jones of Dentons explains what contractors and consultants need to look out for under Qatar’s unfamiliar decennial liability regime.

Dispute resolution
‘Gaps’ can end in tears
Multi-tiered dispute resolution clauses can save parties time and money but, as Elizabeth Kantor and Philip Parrott of Herbert Smith Freehills warn, there are potential pitfalls to watch out for.

Insurance
Bargain basements?
Insurance expert John D Wright of JD Risk Associates looks into the issues around the current trend for excavating extensive basements below prime London properties. Following a number of high profile building collapses, full cover may be hard to find.

Alternative dispute resolution
Adjudication pilot scheme expands
Christine Gordon of Clyde & Co examines an adjudication pilot scheme for professional negligence claims for its potential impact on construction in our latest alternative dispute resolution series article.