Construction Law: March 2018

Editor’s comment
Stay calm and watch the carry-on
The Crown Commercial Service has announced a £30bn contractors framework and the industry is keen to work under it. But Editor Nick Barrett advises against raising hopes too high, too soon.

News
Our regular news round up includes a think tank warning that UK infrastructure procurement processes are out of date; launch of a new government framework procurement route for contracting services; and a call for whistleblowers to come forward with tip offs about cartels.

Legal terms explained
Samantha Scott of Herbert Smith Freehills LLP explains the meanings of gross negligence and wilful default.

Guest editors
The market will decide on collaboration
Guest editors James Doe and Nicholas Downing of Herbert Smith Freehills LLP compare the approaches to collaboration of new contracts from NEC and FIDIC. Could the FIDIC drafters have been bolder, they ask.

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. Iain Bailey provides a commentary on the new FIDIC Red, Yellow and Silver Books.

Reports from the courts
Our review of the most important court cases for construction comes from Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP, focussing on a Court of Session ruling highlighting that contractual rights of set-off may be used as a defence in respect of any additional assessment for payment under a payment certificate, even in the absence of pay less notices; and one showing how the drafting of the guarantee as a whole will be key in determining the differences between a guarantee and on demand bond.

Contracts monitor
Carillion puts spotlight on tendering
Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his examination of the new JCT Tendering Practice Note. The Carillion collapse will bring the tendering process under fresh scrutiny, he predicts.

CL guide
CL guide to: Design liability
This instalment of the CL guide series by Ross Galbraith of DLA Piper looks at design liability of both contractors and consultants.

Procurement
Light at the end of the highways tunnel?
Highways England has suffered some well-known procurement related growing pains since being formed in 2015. But Will Buckby and Andrew Croft of Beale & Company Solicitors LLP see sound reasons to be cheerful for the future of UK roads procurement.

Modern slavery
Managing modern slavery risks in supply chains
The UK is leading the fight against slavery offences with the Modern Slavery Act 2015, says David Hansom of Clyde & Co, who examines the practical strategies for contractors to consider.

Legislation
Third party rights in Scotland – all change?
A new third party rights Act came into force in Scotland in February. Kirsty Olson of Dentons asks whether it spells the end for collateral warranties, and can third parties adjudicate?

Adjudication
Smash and grab here to stay?
Smash and grab adjudications are here to stay, argue Vijay Bange and Oliver Wiliams of Trowers & Hamlins LLP in this review of case law relating to a legitimate strategy purposely sanctioned by the Construction Act.

Insurance
Third party insurance for contractors
Insurance expert John D Wright of JD Risk Associates explains what cover is available for liability towards third parties which, although not legally demanded, is essential.

Alternative dispute resolution
Short term Brexit boost for arbitration?
Our latest alternative dispute resolution series article comes from Iain Boyle of Clyde & Co who sees a threat from Brexit to the UK’s favoured jurisdiction status for arbitration after a possible short-term spike in demand.