Construction Law: March 2019

Editor’s comment
Playing at reform?
Editor Nick Barrett casts a sceptical eye over proposed central government procurement reforms outlined in an Outsourcing Playbook.

News
Our news roundup features the launch by the Cabinet Office of an Outsourcing Playbook, which includes changes to the way risk is allocated, as well as details of a move by the Scottish government to halve the threshold for using project bank accounts.

Legal terms explained
Philip Parrott and Michael Sharp of Herbert Smith Freehills LLP explain what is meant by crystallisation.

Guest editor
New legislation needed for adjudication?
Guest editor Laura Lintott of Dentons UK and Middle East LLP asks whether legislative changes to the Housing Grants, Construction and Regeneration Act 1996 are necessary to clarify the process in ‘smash and grab’ and subsequent ‘true value’ adjudications.

Legislation state of play table
Our round up, prepared by Dentons UK and Middle East LLP, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to UK legislation and EU Directives, the table includes notes highlighting discussion papers issued by both government and non-government organisations and commentary on the latest developments. Akin Akinbode and Tracey Summerell provide a commentary on Project Bank Account proposals.

Reports from the courts
Our regular analysis of the court cases most relevant to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP who focus on a decision that helps clarify the circumstances in which practical completion will be awarded; and one which is an example of the courts enforcing a commercial agreement between parties of equal bargaining power.

Contracts monitor
Beware administrative provisions
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, focuses on the administrative provisions of the JCT Design and Build Contract. Failure to understand them can have knock-on effects, he warns.

CL guides
Directors and health and safety
The latest in our guides to construction law comes from Rachel Chaplin of DLA Piper who explains the health and safety responsibilities of directors.

Prevention
Prevention principle and expressly agreed terms
Mark Macaulay and Charmandip Bhart of Dentons UK and Middle East LLP report on a Court of Appeal judgment that reverses a common law position, confirming that parties may allocate the risk of concurrent delay without contravening the doctrine of prevention.

Liquidated damages
Liquidated damages and guarantor liability principles
Richard Booth and George Harris of HFW analyse a court judgment that provides a useful reminder of the enforceability of liquidated damages. There is a distinction to be drawn between guarantees and indemnities in the context of guarantor provided security.

Legislation
Consumers and construction contracts
Peter Kitson of Russell-Cooke LLP says legislation is needed to provide a proper basis for consumers to contract with construction industry suppliers. Existing legislation is hard to apply in construction and creates unenforceable rights, he argues.

Technology
Smart buildings: unlocking the potential of bricks and mortar
Data driven technologies hold out great promise in developing ‘Smart Buildings’ and ‘Smart Cities’ but, as Simon Porter of CMS warns, there are risks and barriers to be overcome.

Insurance
Insuring at your peril
Insurance expert John D Wright of JD Risk Associates warns that the interpretation of ‘perils’ in insurance policies can be tricky, and standard joint names protection clauses in contracts cannot be relied on.

Alternative dispute resolution
ADR liaison forum proposed
In our latest alternative dispute resolution series article Tracey Summerell of Dentons UK and Middle East LLP explains new measures proposed to spread awareness of the alternatives to litigation. More innovative approaches might help the proposals to succeed, she suggests.