Construction Law: May 2016

Editor’s comment
Whitehall culture needs to be changed
Civil service commercial skills have come in for another blistering attack from MPs who urge the Cabinet Office to up its game to force change. Editor Nick Barrett suggests that a culture change might be needed if public sector contracts are to be properly managed.

News 
Our news round-up focuses on another attack on public sector procurement skills from the Public Accounts Committee; a six year jail sentence handed down to a contractor for gross negligence manslaughter; and a report highlighting widespread ignorance about the recently introduced Modern Slavery Act.

Legal terms explained
Simon Stubbs of Pinsent Masons explains the meaning of endeavour clauses.

Guest editor
No late payment silver bullet
Guest editor Andrew Croft of Beale & Company Solicitors LLP examines the merits of recent steps taken to tackle late payment, and suggests some other possible paths to improvement. The Construction Act is under review, but don’t rely on legislation, he argues.

Legislation state of play table
Our regular update, charting the progress of legislation affecting construction as it passes through the UK and EC systems, comes from Clyde & Co. Rachel Chaplin provides a commentary on the National Infrastructure Commission’s reports.

Reports from the courts
Our regular round up of the court decisions of most interest to construction from Andrew Croft and Natalie Ledger of Beale & Company Solicitors LLP includes a case that highlights the importance of clearly allocating risk in a contract; and one where the parties failed to ensure that an amendment was reflected throughout the contract.

Contracts monitor
Logical pattern removes scope for lame excuses
Contracts monitor Michael Phipps, Principal of Thurston Consultants, turns to the insurance and payment clauses of RIBA’s Concise Building Contract 2014. Some prospects of withholding due payments using ‘lame’ excuses have been removed, he notes.

Arbitration
Arbitrator receives apparent bias ruling  
Doubts about the apparent impartiality of an arbitrator were at the centre of a recent action over his involvement in the process, as Vijay Bange of Trowers & Hamlins reports. Bias is not an issue to be raised lightly, the case demonstrates.

Legislation
Slavery a modern issue 
Brett Hartley of Clyde & Co examines the new supply chain transparency reporting obligations under the UK’s Modern Slavery Act 2015. While targeting larger organisations, all tiers of suppliers operating in the construction sector are likely to feel the effects of the new reporting requirements.

Contracts
Don’t miss the planning risk express!
Julie Teal and Jennifer Badham of Withers analyse a recent case that shows the advantages of having express terms clearly allocating responsibility for obtaining planning consents rather than relying on implied terms in contracts. With planning permissions, it pays to plan ahead.

Expert witnesses
Experts have lessons to learn
Paul Newman of 3PB Barristers reviews recent case law in relation to the use and operation of expert witnesses. Lessons need to be learned by experts themselves as well as the parties and legal counsel instructing them.

Payment
More pay less confusion
Amanda Burge of Hamlins reviews recent court decisions concerning the vexed issue of payments and pay less notices. More attention to contract administration will be needed until the courts sort out the difficulties this area of construction law has got into, she warns.

Insurance
Completion not practically defined
Insurance expert John D Wright of JD Risk Associates explains the insurance perspective on difficulties associated with handover. Case law is inconclusive in several areas but careful definitions can save a lot of problems.

Alternative dispute resolution
Multiple adjudications with the same adjudicator
In our latest alternative dispute resolution series article David Owens of Clyde & Co reports on a rare success for a challenge to an adjudicator’s jurisdiction.