Construction Law: May 2022

Editor’s comment
Modern slavery reporting lacks conviction
News Editor Steve Dale considers how shortcomings in modern slavery reporting among large companies can be addressed to help stamp out the problem.

News
This month’s news roundup leads with Housing Secretary Michael Gove’s threat to pursue cladding manufacturers for contributions to remediating unsafe buildings. We also focus on the implications of a new procurement directive that could see public authorities cutting ties with Russian suppliers, and a fresh call for legislation on cash retentions.

Legal terms explained
Stephanie Lam and Mathew Shelley of Herbert Smith Freehills LLP explain what is meant by reasonable skill and care.

Guest editor
Beyond the Looking Glass
Guest Editors James Wyatt, Megan Everett and Robert Meakin of Clyde & Co highlight key risks facing construction as revealed in their recent Looking Glass Report. The industry has the adaptability to thrive if it tackles the risks head-on and embraces new practices.

Legislation state of play table
Our regular update on the progress of legislation and other developments affecting construction from News Editor Steve Dale who provides a commentary on a CLC guidance note on collaboration.

Reports from the courts
Our regular round up of the court decisions of most interest to construction from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP examines a case that will interest anyone hoping to invoke force majeure clauses against the background of sanctions against Russia; and another that serves as a reminder that terminating parties must take care to follow contractual termination procedures in their entirety.

Analysis
UK construction urgently needs challenging leadership
In a call to long overdue action barrister Rudi Klein of KleinLegal, formerly CEO of the Specialist Engineering Contractors Group, and risk management consultant Stephen Woodward argue that despite widespread recognition that the industry’s business model is unsustainable, reform will not be achieved unless all those with a passion for radical industry improvement are prepared to join forces to put the industry on a healthier and viable footing.

CL guides
Termination
The latest in our Construction Law guides series from DLA Piper is by Clare Rushton, who examines termination provisions in contracts. Termination is rarely uncontentious and frequently results in significant disputes, she warns.

Procurement
Procuring Net Zero Carbon Construction
Professor David Mosey of King’s College London Centre of Construction Law & Dispute Resolution explains how all parties in the supply chain can use procurement and contracting systems to meet net zero carbon targets.

Arbitration
Amuse Bouche to the Arbitration Act Reform
Theresa Mohammed and Laura Lintott of Trowers & Hamlins LLP report on the Law Commission’s review of the Arbitration Act 1996. The hope is that reforms will increase enthusiasm for English Law to continue to dominate as the preferred choice of law for international arbitrations.

Adjudication
Pay Up or Feel the Heat: Grove in Action
Barrister James Davison of 3PB Barristers examines a 26 page Judgment from the Technology and Construction Court that touches on the key issues for payment rights and adjudication. Changes to the way parties approach adjudication are recommended.

Contracts
A discussion of JCT Fluctuations Options A, B and C
Jane Hughes and Isobel Moorhouse of Trowers & Hamlins LLP analyse the fluctuation clauses in the JCT Design & Build contract, which are becoming increasingly important against a background of rising inflation. Which type of fluctuation provision to incorporate in a contract, and whether to amend it, will be highly project specific.

Insurance
Insurance brokers can be your allies
Insurance expert John D Wright explains why insurance brokers can be valuable allies to construction companies facing increasingly complex challenges. Choice of broker is always important as some might not always meet the standard of care demanded.

Alternative dispute resolution
Answering the substantive claim
In our latest alternative dispute resolution series article Millie Leonard of Dentons UK and Middle East examines an appeal ruling in a case where a party sought to stay proceedings as issues were being referred to arbitration.