Editor’s comment
Capital solution for fair payments
Editor Nick Barrett suggests that payments reform legislation might have to be accompanied by measures to help the weak balance sheets of major contractors.
News
Our regular procurement and construction law news round up includes details of a rise in fines for health and safety offences following new sentencing guidance; the roll out of a new pre-qualification system for construction; and the disqualification of two directors over a construction products cartel.
Legal terms explained
Philip Parrott of Herbert Smith Freehills LLP explains what is meant by acceleration.
Guest editor
Honouring the observance rather than the breach
Guest editor Amanda Bucklow, a widely respected Independent Commercial Mediator, says none of the changes in construction practice over the past 20 years or so have tackled the underlying causes of the industry’s adversarial culture. Adjudication has been no help as it undermines both the contract and performance.
Legislation state of play table
Our regular round up of legislation affecting construction as it passes through the UK and EC legislative systems comes from Dentons UK and Middle East LLP whose Gurbinder Grewal and Tracey Summerell provide a commentary on the government’s response to the Business, Energy and Industrial Strategy Committee’s recent report on small businesses and productivity.
Reports from the courts
Our latest round up of construction cases comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, focussing on a dispute involving failure to submit a payment or pay less notice; and a widely publicised domestic client case that highlights the importance of a written agreement, a clear brief, and clear and accurate record-keeping.
Contracts monitor
Who is in charge?
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, turns his attention to the control of the works section of JCT’s Design and Build Contract 2016. Among new requirements is one for the contractor to appoint a Site Manager approved by the Employer; the person in charge is no more.
CL guides
Insolvency
Ross Galbraith of DLA Piper continues our Guides to Construction Law series with a review of UK insolvency processes and measures that can be taken to spot potential problem contractors and protective steps that can be adopted.
Contracts
Price, scope of works and risk
Suriya Edwards of Foot Anstey LLP warns that a recent court decision means risk allocation clauses relating to works that are not ‘in scope’ can be rendered useless. The link between consideration and risk needs to be underpinned by a clear ‘scope of works’.
Insolvency
Mitigating insolvency effects in the supply chain
Gurbinder Grewal and Michael Wright of Dentons UK and Middle East LLP explain the knock on effects of insolvencies and the mitigating steps that can be taken. Early warning signs of looming insolvency can be spotted.
Liquidated damages after contract termination
Chris Philpot of HFW explains the implications of a court decision for liquidated damages claims following termination of a contract. The question of whether a party failing to issue a pay less notice can start a value adjudication without first paying the notified sum is also considered.
Legislation
Safe as houses: fire safety and the legislative regime – Pt II
In the second part of an article on the fire safety regime in England, barristers Chris Bryden and Georgia Whiting of Chambers of Timothy Raggatt QC move on to a critical examination of current legislation and proposals for reform.
Insurance
Insurance claims – forward planning essential
Insurance expert John D Wright of JD Risk Associates argues that forward planning is essential if proper protection is to be gained from insurance cover. Planning for a successful outcome to an insurance claim must start at the proposal stage.
Alternative dispute resolution
Model mediation agreements
The latest in our alternative dispute resolution series, from Gurbinder Grewal and Tracey Summerell of Dentons UK and Middle East LLP reviews the Construction Industry Council’s proposals for a model mediation agreement and procedure as consulted on towards the end of 2018.