Construction Law – March 2020

Editor’s comment
Grenfell reform may extend to procurement
Big changes in the fire safety regime might usher in changes in procurement practices as well, Editor Nick Barrett reports.

News
Our regular news round up reports on a TCC Disclosure pilot scheme; the restart of the Grenfell inquiry; and further delays to hospitals that were being built by Carillion.

Legal terms explained
Harith Canna of Herbert Smith Freehills LLP explains Aliance Contracting.

Guest editor
MMC and procurement
Guest Editor Professor David Mosey, King’s College London, argues that adoption of long-term procurement strategies and collaborative call-off contracts arguably offers the best way to deliver successful modern methods of construction investments.

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. Akin Akinbode and Tessa Birch comment on looming UK tax changes.

Reports from the courts
Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP present our regular round up of the court cases of most interest to construction, one of which stands as warning against using Part 8 claims as appeals against adjudication decisions; and another that cautions that payments into court are not equivalent to payment bonds.

Analysis
VAT changes threaten small firm survival
Tax policy expert Brian Palmer of AAT warns that changes in the way payments are made to VAT registered subcontractors – making main contractors liable for payments – could drive smaller firms out of business.

CL guides
CIS and the VAT reverse charge
In our latest Guides series article Tom Manley and Lisa O’Gorman of DLA Piper examine the implications of looming changes in construction tax legislation.

Immigration
The post Brexit immigration landscape
Gillian McKearney, head of UK Immigration at Fieldfisher, warns that retaining European Union national employees will be key to surviving in the the post Brexit immigration landscape. Employers must be proactive, she advises.

Adjudication
Adjudication strategy: how can I maximise my prospects?
Oli Macrae of Foot Anstey LLP advises on how to take an effective approach to developing a strategy for an adjudication. Strategic advantages can be gained through adopting appropriate tactics.

Insolvency
The corporate veil in a construction context
Barristers Chris Bryden and Georgia Whiting, Chambers of Timothy Raggatt QC, 4 King’s Bench Walk, explain why limited liability – shielding directors of failed companies behind the corporate veil, while exposing others to suffering – is a necessary double sided coin.

Disputes
The importance of being earnest
In the first of a two part article quantity surveyor Iain Wishart gives a personal view of what he regards as the root cause of construction disputes. The unusual commercial nature of construction contracts is a key issue.

Insurance
Stormy waters for policyholders
Insurance expert John D Wright of JD Risk Associates examines clauses relating to storm and flood damage in policies. Insurers try to impose their own definitions of terms and the courts do not always support contractors seeking immunity under joint names clauses.

Alternative dispute resolution
The ramifications of amending dispute resolution clauses
In our latest Alternative Dispute Resolution series article Tracey Summerell of Dentons LLP urges caution when amending dispute resolution clauses.