Construction Law: January/February 2017

Editor’s comment    
Procurement focused strategy published
Editor Nick Barrett finds a range of familiar messages about post-Brexit procurement in the government’s industrial strategy Green Paper. The fact that Prime Minister Theresa May is spearheading these strategic reforms could make the difference this time.

News
Our news round up this month includes evidence that the HSE’s fee for intervention scheme doesn’t raise enough to pay for its costs; calls for government to detail how UK court decisions can be enforced internationally post-Brexit; and a World Bank report highlights public procurement shortfalls in 180 countries.

Legal terms explained
Ann Levin and Michael Sharp of Herbert Smith Freehills explain what is meant by assignment.

Guest editor
Reassessing adjudication
Guest editor Stephen Woodward of project consultancy ResoLex says compulsory adjudication is adversarial and pulling against the industry drive towards collaborative ways of working. The time is ripe for the culture change needed to foster collaboration, leaving adjudication as a true last resort.

Legislation state of play table
Clyde & Co provide our regular round up of the progress of legislation as it makes its way through the UK and EC legislative systems. Alexander Gandhi and Iain Boyle comment on the new edition of the Pre-Action Protocol for Construction and Engineering Disputes.

Reports from the courts
Our latest look at recent court decisions from Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP focuses on two disputes over oral contracts; one with major implications for ‘smash and grab’ adjudications; and the other highlighting the importance of agreeing costs and the basis of their calculation at the start of any construction contract.

Contracts monitor
Red type a warning of problems ahead
Contracts monitor Michael Phipps, Principal of Thurston Consultants, examines Contract Particulars of the JCT’s new Minor Works Building Contract. Don’t be lulled in to a false sense of security by the changes to this version, he warns, there are complications to come.

CL guides
A beginner’s guide to: JCT contracts
In the first of a new series of nuts and bolts guides to construction law topics from DLA Piper, Rachel Chaplin explains the basics of selecting which of the JCT’s range of contracts is most suitable for a particular project.

Adjudication review
Review of adjudication cases in 2016
Lawrence Davies and Danielle Griffiths of Pinsent Masons review some of the key adjudication related cases from 2016 and the impact they will have on practitioners. Hot topics included extending adjudication to settlements, serial adjudication and curtailment of ‘smash and grab’ actions.

Scotland review
2016 – bonds and warranties featured in Scotland
Shona Frame and Frances Garratt of CMS review the year in Scotland. A number of significant legal and legislative developments included court decisions affecting performance bonds and collateral warranties, and legislative support was given to project bank accounts.

Contracts
Knock for knock in offshore construction contracts
Katherine Doran of Holman Fenwick Willan LLP cuts through the complexity of how ‘knock for knock’ provisions work in offshore construction contracts, giving a breakdown of a typical clause to show how the various elements fit together.

Concurrent delay
Concurrent delay outlook uncertain
Aidan Steensma, Of Counsel at CMS, examines the implications for approaches to concurrent delay of a recent decision made in the Commercial Court. There is still no sign of agreement between construction specialists about which approach to favour.

Insurance
Risk management for architects and engineers
Management of risk cannot be ignored just because an insurance policy is in place, warns insurance expert John D Wright of JD Risk Associates, in this guide to how to approach proper risk management.

Alternative dispute resolution
Solvency doubts no reason for a stay
In our latest alternative dispute resolution series article Jamie Calvie of Clyde & Co analyses a recent decision where a contractor’s worries about a client’s ability to meet its final account obligations proved to be no justification for staying an adjudication award.