Construction Law: July 2017

Editor’s comment
Time to refocus on quality
Editor Nick Barrett argues for a cross industry approach to analysing what has happened to the construction industry’s approach to quality, called into question by disasters in London and Edinburgh.

News
Our regular news round up focuses on the fallout from the Grenfell Tower disaster; launch of the NEC4 contracts; and more schools defects revealed in Edinburgh.

Legal terms explained
Frustration and force majeure are explained by Emma Kurtovich and Michael Mendelblat of Herbert Smith Freehills.

Guest editor
Judges backing off common sense approach?
Guest editor Vijay Bange of Trowers & Hamlins LLP views the courts’ attitude to interpreting contracts. The commercial common sense versus literal interpretation of words used conflict is unresolved, he says.

Legislation state of play table
Our regular update of the progress of legislation as it passes through the UK and EC legislative systems is provided by Clyde & Co, with a commentary on new payment practices legislation from Richard Kniveton and Ana Bonnington.

Reports from the courts
Our regular review of cases of most importance to construction comes from Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP, including one highlighting the potential dangers of giving ad hoc and free advice as a business development initiative; and another showing how a widely drafted limit of liability clause may still be reasonable and therefore enforceable under unfair contract terms legislation.

Contracts monitor
Digitising benefits not fully realised
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of the JCT Minor Works Building Contract. Some 35 years since JCT Forms were first digitised, full advantage has not yet been taken of the wide range of searches which digitising permits, he says.

CL guides
CL Guide to: adjudication
Michael Tomlinson of DLA Piper presents the latest in our Construction Law guides series, explaining how the adjudication regime works. A useful checklist is provided to help steer through what can be a tricky course.

Legislation
The legal challenges of Brexit for construction projects
Brexit poses particular challenges for those drafting and negotiating contracts for construction projects in the UK, explain Peter Kitson and Mark Fletcher of Russell-Cooke LLP in this overview of the risks.

Adjudication
Adjudicator not bound to accept answers
Stephen Radcliffe of Walker Morris LLP reviews a recent case dealing with jurisdiction and natural justice arguments, in which the court also commented on serial adjudications, severance of decisions, and the use of ‘catch all’ provisions in notices of adjudication and referral notices.

Contracts
PSA 2017: striking the right balance?
Jennifer Badham of Withers LLP looks at the ACE Professional Services Agreement from an employer’s perspective. The new version doesn’t go far enough to strike a balance between the interests of consultants and their clients and funders, she concludes.

Minimum acceptable performance levels
Failing to meet performance related criteria can lead to termination of contracts, so clauses need careful drafting, and reading. Suriya Edwards of Geldards LLP reports on a case that offers a guide to how the courts will interpret contracts containing performance clauses.

Insurance
When is damage not a defect?
Insurance expert John D Wright of JD Risk Associates explains the cover available for defects, which insurance companies as a rule do not feel they should be liable for. Claims can be affected by details of what is insured damage and what is a defect.

Alternative dispute resolution
Injustice not to be simply assumed
In our latest alternative dispute resolution series article Rupert Coldwell of Clyde & Co examines an attempt to remove arbitrators for allegedly failing to properly conduct proceedings.