Editor’s comment
Matron could cure schools of scandal
Private finance has been given the all clear by the Construction of Edinburgh Schools inquiry but the entire UK construction industry’s quality assurance approach has been called into question, says Editor Nick Barrett.
News
Our regular news round up focuses on a survey showing major contractors are owed over £1bn in retentions; an inquiry into defective school buildings; and a survey showing that the level of health and safety fines of over £1m is rising dramatically.
Legal terms explained
Ann Levin and Michael Sharp of Herbert Smith Freehills explain concurrent delay.
Guest editor
Construction costs: a call to action
Guest editor Paul Lowe of Weightmans LLP, a member of the Forum of Insurance Lawyers (FOIL), examines research that points the way towards reducing the errors that give rise to construction disputes. Losses from errors exceed the industry’s annual profits.
Legislation state of play table
Clyde & Co provide our regular update on the progress of legislation affecting construction as it passes through the UK and EC legislative systems. Lois Putnam and Alex Devereux comment on new government procurement guidance.
Reports from the courts
In our regular round up of the court decisions of most interest to construction Andrew Croft and Simii Sivapilan of Beale & Company Solicitors LLP report on a shipbuilding dispute where the court gave a wide interpretation to an exclusion of ‘consequential loss’; and another confirming that an adjudication on a failure to issue notices in relation to an interim payment will not prevent a party commencing a second adjudication in relation to the value of the works.
Contracts monitor
Wordy clauses need to be simplified
Our contracts monitor, Michael Phipps, Principal of Thurston Consultants, scrutinises the new JCT Minor Works Building Contract and welcomes some helpful changes. Some clauses remain longer than they need be, he argues.
CL guides
Construction Law Guide to: NEC3
In the first instalment of a two part article, our latest CL Guide, from Corinne McCarthy of DLA Piper LLP, looks at the NEC Engineering and Construction Contract.
Arbitration
Emergency arbitrators and expedited tribunals
The unavailability of emergency relief has often been cited in the past as a drawback of arbitration. James Doe and Robin Wood of Herbert Smith Freehills report that emergency provisions are now available and working well.
Adjudication
Recovery of costs in adjudication – a missed opportunity?
Vijay Bange of Trowers & Hamlyns LLP reports on a court ruling that represents a conceptual shift from the previous established position for costs recovery under the Construction Act. An authoritative statement on the applicability of the Act to the recovery of a party’s costs in recovering a debt in adjudication is now needed.
Payments
Paying for your mistakes
Recent court rulings have highlighted the dangers of failing to issue pay less notices. Jennifer Badham of Withers reports on a case that provides at least some relief for paying parties who fail to issue notices on time at final account stage.
Procurement
Slow procurement might hinder new market
Cecily Davis and Zina Leseanu of Fieldfisher say the government’s new industrial strategy, which places construction at the heart of plans to reinvent the UK, will mean a new dawn for district heating projects. Here, they consider some of the procurement challenges that will arise.
Insurance
Damage to the works – loss of revenue
Insurance expert John D Wright of JD Risk Associates explains issues surrounding consequential losses, which contract works policies will specifically exclude.
Alternative dispute resolution
Promoting conflict avoidance
An industry wide clamour for collaborative working and conflict avoidance procedures is starting to be reflected in contracts, says Chris Kerr of Clyde & Co in our latest alternative dispute resolution series article.