Construction Law: May 2017

Editor’s comment    
Procurement off the rails
Editor Nick Barrett say the HS2 conflicts of interest controversy suggests that the UK’s procurement problems extend well beyond the usual civil service whipping boys.

News
This month’s news round up focusses on further developments in the Edinburgh school building scandal; a survey alleging a disconnect between law firms and their clients; and a report suggesting employees would not report unethical business behaviour because of career fears.

Legal terms explained
Ann Levin and Kemi Adekoya of Herbert Smith Freehills explain on demand and conditional performance bonds.

Guest editor
Keep calm and carry-on
Guest editor Darryl Royce of Atkin Chambers says the position relating to debt recovery costs in adjudication remains unclear despite a court ruling that many seem to think has brought clarity.

Legislation state of play table
Our regular update of the progress of legislation as it passes through the UK and EC legislative systems comes from Clyde & Co. Jamie Calvy and Emily Morris provide a commentary on the Budget.

Reports from the courts
Our regular review of the cases of most interest to construction from Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP focuses on a ruling that highlights the importance of keeping an eye on limitation periods when counterclaims may be likely; and one that underlines the importance of issuing payment and/or pay less notices in time.

Contracts monitor
Consistent wording hard to achieve
Contracts monitor Michael Phipps, Principal of Thurston Consultants, scrutinises the insurance provisions of the JCT Minor Works Building Contract. Keeping insurers abreast of changes to wordings of clauses is essential, he cautions.

CL guides
CL Guide to: Two stage tenders
In the latest of our ‘nuts and bolts’ guides Rachel Chaplin of DLA Piper explains how two stage tendering works. A key benefit of this approach is early contractor involvement, but there are also potential drawbacks.

Collaboration
Collaborative consulting  
Three new forms of professional services contract have been published in the early months of 2017, by the ACE, the IChemE and FIDIC. All seek to promote collaborative ways of working, as Tom Pemberton of Beale & Company Solicitors LLP explains.

Procurement
Teething problems with Scottish public procurement
After a year of life under the new Scottish public procurement rules Graeme Young and Helen Fyfe of CMS Cameron McKenna LLP examine how they are bedding in. The goal of a quicker and simpler tendering process is still to be achieved, they find.

Arbitration
More transparency in arbitration
Raid Abu-Manneh, Juliana Castillo and Rachael O’Grady of Mayer Brown examine the new ICC Rules 2017 and explain their potential impact on construction arbitrations. More transparency is promised, which could be of benefit.

Contracts
Is NEC Option X.15 fit for purpose?
NEC reverses the normal burden of proof for defects, placing the onus on the contractor to prove that his design was not defective. Max Wieliczko and Katherine Doran of Holman Fenwick Willan LLP ask whether NEC’s ‘reasonable skill and care’ contractors’ design option is really fit for purpose.

Insurance
Joint names clauses create own problems
Insurance expert John D Wright of JD Risk Associates reviews the development of joint names insurance clauses in construction contracts, noting that they have not prevented disputes reaching the courts. Who bears the risks in any given situation continues to be a question not always easily answered.

Alternative dispute resolution
Security and arbitral awards
In our latest alternative dispute resolution series article David Owens and Rebecca Evans of Clyde & Co LLP report on a Supreme Court ruling on a very long running dispute that provides clarity on aspects of the arbitration enforcement regime.