Construction Law: June 2020

Editor’s comment
Delay and disruption battles loom
As the industry emerges from lockdown Editor Nick Barrett reports that strong advice is being given about an expected outbreak of disputes over delay and disruption costs. Expect future contracts to reflect the new reality, he says.

News
This month’s news roundup focuses on COVID-19 developments including plans to get non essential works back on site in Scotland, the new Corporate Insolvency & Governance Bill introduced to Parliament by the UK Government, and a report from Arcadis which recommends new approaches to contracts in light of the crisis.

Legal terms explained
Harith Canna of Herbert Smith Freehills LLP explains exclusive remedy clauses.

Guest editor
No Construction Act reform in sight after consultation
Guest Editor Nathan McBride of DLA Piper finds interesting insights in the government’s response to its Construction Act consultation, but it’s a case of watch this space for indications of how legislation might develop.

Legislation state of play table
Our regular round up of legislation affecting construction as it passes through the UK legislative process comes from Dentons UK and Middle East LLP. Esther McDermott and Tracey Summerell comment on COVID-19 and its effect on combating modern slavery.

Reports from the courts
Our regular round up of the court decisions of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP focusing on a case which supports an adjudicator’s ability to grant an extension to the timetable; and one providing a reminder of the importance of clearly drafted, unambiguous contract provisions.

Analysis
Climate change – a wind of change for construction?
Vijay Bange of Duane Morris warns that an increasing focus on climate change when pursuing permission for major infrastructure developments might run counter to post COVID-19 pandemic efforts to reflect the world economy.

CL guides
Insuring a construction project
In our latest Construction Law Guide Jessica Tierney of DLA Piper explains the main types of insurance cover used in construction.

Litigation funding
Litigation funding – preserving cash in uncertain times
Construction disputes, particularly over claims and termination, are expected to increase as the costs of COVID-19 begin to bite. Glenn Newberry and Jessica Neuberger of Eversheds Sutherland explain the role that the different types of litigation funding could play.

Disputes
An open and shut case: construction sites in England
Nick Viljoen of HFW explains why parties need to be aware of their contractual options with delays, disruption and additional costs expected as sites re-open using COVID-19 Standard Operating Procedures. Not all costs will be easy to recover, he warns.

Court procedure
Technology keeps the court wheels turning
Barristers Chris Bryden and Georgia Whiting of 4 King’s Bench Walk examine the impact of changes made to court procedure in the COVID-19 age. Early thoughts that complex construction cases would be subject to lengthy adjournment have been laid to rest as judges prove happy to expand the use of technology.

Contracts
Supporting modern methods of construction in housebuilding
Katie Saunders of Trowers & Hamlins LLP analyses whether existing procurement practices and contract forms are up to the task of supporting adoption of modern methods of construction in housebuilding.

Insurance
Underinsurance threatens business survival
Insurance expert John D Wright of JD Risk Associates warns that underinsuring is a widespread and dangerous practice, as many companies are currently finding out when they try to claim for business interruption. Other key types of cover are also neglected, he warns.

Alternative dispute resolution
Mind your “Ps” & “Cs” to avoid disputes
In our latest alternative dispute resolution series article Tracey Summerell of Dentons UK and Middle East LLP suggests successful conflict avoidance will also require a change in mindset for some.