Construction Law: January 2023

Editor’s comment
Developers have ‘nowhere to hide’ over Grenfell related repair costs
Editor Nick Barrett detects and welcomes a shift in approach in the government’s response to the 2017 Grenfell Tower fire, which has at last been announced. Expect to see more court cases around cladding repairs disputes. 

News
In this month’s news round up we have a report from the Public Accounts Committee on the first year of operation of the UK Investment Bank – could have done better apparently; a company director receiving a jail sentence for health and safety breaches that led to a worker’s death; and a heavy fine for health and safety breaches at another company which also resulted in a worker’s death.

Legal terms explained
Lucinda Hill and Noe Minamikata of Herbert Smith Freehills explain what is meant by a defect, and what damages might be available.

Guest editor
How international collaboration can reduce the costs of construction disputes
English law has benefitted from being ‘open for business’ faster than other jurisdictions post the Covid crisis, partly due to familiarity with technology, says Guest Editor Bill Barton, Director of Barton Legal, who recommends that international companies should collaborate with English lawyers for more cost effective contracts.

Legislation state of play table 
Our regular update on the progress of legislation and other developments affecting construction, compiled by Barrett Byrd Associates.

Reports from the courts
Our regular round up of the cases of most interest to construction from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP looks at a case showing why Parties should take care when seeking to place reliance on previous adjudication decisions; and another judgment which should be taken as a reminder to parties to take care when entering into ‘back-to-back’ contracts, as these will likely impose higher standards of care.

Analysis
Cladding fire safety claims – loss too remote?
Laura Lintott, Of Counsel, and Sam Goodwill of Watson Farley & Williams LLP analyse a case that highlights the hesitancy of the courts to allow parties to collateral warranties to evade liability easily on the basis that the loss was too remote. Given the current focus on fire safety and cladding more cases like this are to be expected.

CL guides
Directors’ Health and Safety Requirements
In our latest Construction Guides series article from DLA Piper, Rachel Chaplin explains the extent of health and safety responsibilities of company directors. 

Review of 2022
Review of construction law in 2022
Our review of the main construction law related events of 2022 comes from Victoria Peckett, Nisha Nyant and Sharni Mellors of Clyde & Co LLP. Unpredictability is the new norm, they conclude, while hoping for less turbulence in 2023.

Review of 2022 in Scotland
Scottish construction law review 2022
Lee Lothian and Sophie Malley of CMS review the main construction law related events in Scotland in 2022.  

Sanctions
‘Going Rogue’ – The effects of sanctions on the construction Industry
The imposition of sanctions on Russia in response to its invasion of Ukraine enjoys widespread support across the western world, despite having impacts on industries in the economies of countries that support Ukraine. Vijay Bange of Duane Morris explains how the sanctions affect construction and engineering. 

Adjudication
Records key to defence against ‘smash and grab’
John Wallace of specialist construction and real estate boutique law firm Ridgemont examines recent case law surrounding pay less notices. Businesses are risking it all by failing to ensure contractual payment mechanisms are being followed and failing to issue valid notices on time to protect their positions, he argues.  

Insurance
Professional Indemnity market problems
Insurance expert John D Wright of JD Risk Associates reports an easing in the market for cover with new entrants at least partly accounting for a slowing down of rate increases. Problems still remain in the post Grenfell Tower tragedy world however.   

Alternative dispute resolution
Reasons to be cheerful ‘23
The latest in our alternative dispute resolution series comes from Tracey Summerell of Dentons UK and Middle East LLP who looks back at achievements of the ADR community in 2022.