Construction Law: February 2019

Editor’s comment
Business life goes on post Brexit
New guidance from the Cabinet Office and closure of a procurement loophole by the appeal court are signs that familiar rules will still apply post Brexit, says Editor Nick Barrett.

News
News featured in this month’s issue includes a new entrant to the construction insurance market as premiums soar; a call to establish a forum for liaison between judges, legal professionals and other stakeholders to progress the role of alternative dispute resolution; and details of a new Private Member’s Bill to ensure the use of project bank accounts on public sector schemes.

Legal terms explained
Philip Parrott of Herbert Smith Freehills LLP explains the meaning of ‘the notified sum’.

Guest editor
Adjudication: How’s it working?
Guest editor Naithan McBride of DLA Piper asks how adjudication and the Construction Act are working, ahead of the results of a government consultation being published. Recent cases may point legislators towards areas ripe for reform, he suggests.

Legislation state of play table
Our regular round up on the progress of legislation as it passes through the EU and UK legislative systems comes from Clyde & Co LLP. Tim Axtmann and Claire Mayo provide a comment on a call for cartel whistleblowers from the Competition and Markets Authority.

Reports from the courts
Our regular review of the most important court decisions for construction from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP focuses on a Court of Appeal ruling that highlights the potential problems of working before finalising contract terms; and a case that provides a rare example of a claim for procuring or inducing breach of contract.

Contracts monitor
Watch out for new definitions
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, finds big changes in the definitions applying to JCT Design and Build Contract 2016. A long-standing provision, on which many a claim has foundered, is retained.

CL guides
Key ancillary agreements
Hannah Thomas of DLA Piper continues our series of guides to construction law topics with an examination of ancillary agreements. Four key types of ancillary agreements are examined.

Review of 2018
Reasons to be cheerful despite 2018 setbacks
In a year dominated by the potential unravelling of 40 years of EU legislation, 2018 brought much disappointment for construction, says Cecily Davis of Freshfields in this review of the key developments. For the future, it is time for the industry to deliver on the sustainability front, she argues.

Scotland in 2018
Shona Frame and Nicholas Carroll of CMS review 2018 with a focus on Scotland, where the impact of Carillion’s collapse kicked off an interesting year of significant case law, government consultations and legislative developments. Earlier strengthening of Scottish building regulations meant few buildings were affected by a post-Grenfell disaster focus on cladding.

Contracts
Plus ça change – why amending published construction contracts is good practice
A common industry view is that standard form contracts are best used unamended. Peter Kitson of Russell-Cooke takes issue with that idea and insists that amending contracts in fact represents well-established good practice.

Insurance
Insuring today’s environment
Insurance expert John D Wright of JD Risk Associates inspects the cover available for environmental damage. Mainstream insurers provide very limited cover so a specialist insurance market must be tapped.

Development
Pressure to use airspace builds up
Anne Wright and Avi Barr of Lawrence Stephens Solicitors analyse some of the issues related to the growing trend towards airspace development for both private and public sector clients. Its impact on housing provision could be significant but there are potential legal and planning issues to overcome, they warn.

Alternative dispute resolution
Fate of smash and grab adjudications decided
The latest in our alternative dispute resolution series, from Chris Leadbetter and Emily Morris of Clyde & Co LLP, examines a recent Court of Appeal decision that spells the end for ‘smash and grab’ adjudications.