Construction Law: December 2018

Editor’s comment
May the force be with you
Editor Nick Barrett says it is clear which side to support in the promised ‘revolution’ in public sector procurement; but victory will be hard to achieve.

News
Chancellor Philip Hammond’s announcement that government will no longer sign off PFI contracts leads this month’s news round up, which also includes the latest figures on fines for health and safety offences and details of a new approach to highways procurement.

Legal terms explained
Michael Sharp of Herbert Smith Freehills LLP on no loss arguments.

Guest editor
Limiting amendments is no easy task
Guest editor Sarah Thomas of DLA Piper examines FIDIC’s Golden Principles, which aim to define what the essential elements of a contract conforming to the philosophy of the organisation should be. Although well intentioned, the Principles demonstrate the practical difficulties of trying to limit amendments, she argues.

Legislation state of play table
Clyde & Co LLP compiled our regular update on the progress of legislation affecting construction making its way through the EC and UK legislative systems. Andrew Primett and Claire Mayo of Clyde & Co LLP discuss the European Parliament’s resolution on the Commission’s public procurement strategy package.

Reports from the courts
Our regular round up of key cases from the courts comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, focussing on a decision that will be welcomed by parties providing collateral warranties to third parties; and a rare example of a case involving NHBC cover.

Contracts monitor
Insurance footnote a ‘must read’
Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of JCT’s Design and Build Contract 2016 Contract Particulars, focussing particularly on insurance provisions. As the scale of changes suggests, the Contract Conditions will also contain substantial changes.

CL guides
Damages
In our latest Guide to construction law topics from DLA Piper Rachel Chaplin explains the different types of damages, what they are, how they may arise and how they are calculated.

Payments
Not such a smashing and grabbing time now
Richard Booth of Holman Fenwick Willan LLP analyses a key appeal court decision relating to the vexed issue of payments under the Construction Act where no valid payment notice or pay less notice has been issued. Is it the end for ‘smash and grab’ adjudications?

Brexit
Time to think about life after Brexit
Government has advised companies to make contingencies for a no-deal Brexit, against a background best described as uncertain. Editor Nick Barrett describes the guidance that has so far been offered relating to pursuing EU projects and the new competition regime that might exist.

BIM Protocol
BIM, ECI, collaborative working and joint risk management – pieces of a jigsaw?
Asad Chaudhri of Turner & Townsend identifies a lack of clarity in the guidance offered in the Construction Industry Council’s BIM Protocol and warns that some BIM ‘solutions’ might have unintended consequences.

Human rights
Time to step up to human rights responsibilities
A United Nations Working Group has published its first draft treaty to regulate human rights on large international projects. Catherine Gilfedder and Esther McDermott of Dentons warn that the construction industry is under ever closer human rights scrutiny.

Insurance
Third party rights against insurers
Insurance expert John D Wright of JD Risk Associates examines the background to third party rights now that reforming legislation has been effective for two years. Diligence before project commencement is still essential to prevent later problems.

Alternative dispute resolution
Arbitration clauses and Pt 8 applications
In the latest of our alternative dispute resolution series articles Richard Kniveton of Clyde & Co LLP examines a judgment highlighting that the effects of JCT’s standard arbitration clause should not be underestimated.