Construction Law, January/February 2016

Editor’s comment
A risk worth taking?
Transformation projects pose the biggest risks according to a National Audit Office report on major infrastructure delivery. Editor Nick Barrett says any risks inherent in trying to transform infrastructure procurement have to be taken.

Legal terms explained
Hannah Wennell of Pinsent Masons explains penalty clauses, a topic where there is some recent case law.

Book review
Janey Milligan, Managing Director of Construction Dispute Resolution, reviews A Practical Guide to Construction Adjudication by James Pickavance, which deserves to become a staple on industry bookshelves.

Guest editor
Un-Belize-able: the diminishing role of commerciality
Parties will have to live and die by the wording of their contracts following an apparent Supreme Court volte-face on how contract terms are to be determined, warn guest editors Rachel Ansell QC and Matthew Thorne of 4 Pump Court.

Legislation state of play table
Our regular round up of the progress of legislation affecting construction as it passes through the UK and EC legislative systems comes from Clyde & Co, whose Chris Kerr comments on the merger of Infrastructure UK and the Major Projects Authority to create the new Infrastructure and Projects Authority.

Reports from the courts
Our round up of the key court decisions affecting construction from Andrew Croft and Simii Sivapalan of Beale & Company, includes a case highlighting that a limitation clause does not remove liabilities to all parties on a contract; and another where a court considered the late payment provisions of the ‘Construction Act’ where insolvency was a risk.

Contracts monitor
Mixing tenses has no place in contracts
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of the RIBA Concise Building Contract 2014. Some curious wordings leave some questions unanswered, he finds.

Adjudication
Key adjudication questions still unanswered
Last year was a busy one for adjudication cases coming to court. Lawrence Davies and Matthew Friedlander of Pinsent Masons review some of the key cases and the future impact they will have.

Review of the year
Review of the year in Scotland
Shona Frame and Madeleine Young of CMS review the main events in construction law in Scotland during 2015. A highlight was a rare example of an NEC contract being considered by the courts.

Interim payments
Payment issues clarified
Doug Wass of Macfarlanes LLP welcomes the clarity on interim payments provided by recent court decisions. Pay less notices that set out a revaluation of work are valid, employers will be pleased to learn.

Contract administration
Get with the programme!
Is incorporating the programme into the construction contract a good idea? VanWyck Johnson of Clyde & Co warns perhaps not, in this analysis of the value of effective programming.

Arbitration and insolvency
Insolvency Rules vs arbitration – which prevails?
Vijay Bange of Trowers & Hamlins analyses a dispute involving an insolvent contractor that provides guidance on whether the Insolvency Rules or an arbitration clause should apply. Arbitration prevailed so check your contract documentation, he urges.

Insurance
Litigation to fall under new Insurance Act
Insurance expert John D Wright of JD Risk Associates looks at the new Insurance Act coming into force this year, which should help policyholders and reduce litigation. The courts face a lengthy job of interpretation however.

Alternative dispute resolution
RICS and the Goldilocks principle
In our latest alternative dispute resolution series article David Owens of Clyde & Co examines the new, hopefully faster, arbitration service from the RICS.