Construction Law January/February 2020

Editor’s comment
High speed vanity?
Editor Nick Barrett asks in the wake of yet another report critical of HS2, whether the UK is in danger of buying another expensive lesson in how not to procure infrastructure, which it will ignore like all the others.

News
Our regular construction law and procurement news round up includes details of programme and cost risks to High Speed 2 as well as two hospitals that were being built by Carillion before its collapse. It has also been revealed that the Health & Safety Executive will oversee implementation of the Government’s new building safety regulations.

Legal terms explained
Elissa Patel and Michael Sharp of Herbert Smith Freehills LLP explain cost reinbursable contracts.

Guest editor
Judges tightening up on witness evidence
Guest Editors Akin Akinbode and Tracey Summerell of Dentons LLP consider the recent Witness Evidence Working Group’s recommendations and why they are needed. A changed approach might be needed, they say.

Legislation state of play table
Our regular update of the progress of legislation of interest to construction passing through the UK and EC legislative systems comes from Dentons UK and Middle East LLP; along with a commentary on the industry’s mental health campaigns.

Reports from the courts
In our round up of cases of most interest to construction Andrew Croft and Benjamin Spannuth of Beale & Co Solicitors LLP report on a decision that confirms the importance of expressly including an Act-compliant payment mechanism and an express right to suspend in the event of non-payment in every ‘hybrid’ contract; and another that warns replacement contractors not to be reckless in how they regard pre existing disputes.

Conference report
Collaborating to manage risk and delivery
Kelachi Amadi-Echendu of Resolex reports from November’s Alliance Steering Group conference in London where the focus was on how collaborative procurement can deliver value to complex projects. Delegates heard how the government is working with industry to transform the construction process.

CL guides
Performance security
The latest in our series of Guides to key construction law topics, on performance security, comes from Victoria Ball and Jaskiran Bansal of DLA Piper.

Review of the year 2019
Judicial spotlight on some old favourites
Ryan Musikant, Earle Brady and Cecily Davis of Freshfields look back at what 2019 brought for construction law, with important developments relating to areas like concurrency, insurance policy wording, practical completion, procurement and liquidated damages.

Review of the year in Scotland
Major impacts might be yet to come
Shona Frame, Anita Crozier and Melissa Laurie of CMS report on how key developments of the year for construction law in Scotland. The impact of some of these developments will be felt during 2020 and beyond, they predict.

Grenfell inquiry
Grenfell Phase 1 a portent of things to come
Barristers Philip Bambagiotti and Nicholas Kaplan of 3 Paper Buildings (3PB) warn that construction will come under a harsher spotlight than it already has when Phase 2 of the Grenfell Tower inquiry gets underway. Public pressure might lead to changes in the law regarding tortious claims for pure economic losses.

Contracts
Force Majeure and causation – new guidance from the English courts
Emma Schaafsma and Emily Blanshard of Herbert Smith Freehills LLP analyse recent case law with implications for force majeure and consider its possible impact on construction contracts. Careful drafting will be needed to avoid ambiguity in force majeure clauses.

Insurance
PI Notification Issues Persist
Insurance expert John D Wright of JD Risk Associates reviews recent case law associated with Professional Indemnity cover for construction professionals.

Alternative dispute resolution
Cooperation promotes mediation
In our latest ADR series article Roger Levitt follows up one on emotional intelligence in the previous issue of CL, sharing some of the processes he uses to encourage parties to prepare for mediation using EQ.