Construction Law: May 2023

Editor’s comment
Removing ‘dead hand’ of the Treasury could spur growth
Editor Nick Barrett reports on a survey arguing that much of the blame for the UK’s poor record on infrastructure investment and procurement can be laid at the door of the Treasury.

News 
Our regular news round up reports on Build UK recommending its members to shun six contract terms; a new collaborative procurement approach in the water sector; and a demand that road builders earn a diploma in integrated project delivery.

Legal terms explained
Daniel Waldek and Tse Wei Lim of Herbert Smith Freehills explain what is meant by ‘pacing delay’.

Guest editor
Building Safety Act 2022: where are we now?
Guest Editor Tim Seal of Ridgemont examines where we have got to with building safety. The picture is complex and the outcome far from predictable, he argues.

Legislation state of play table
Our regular update of the progress of legislation and government procurement related developments compiled by Construction Law staff.

Reports from the courts
Our regular round up of the court decisions of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP who examine a case highlighting the risks of contracting with companies with parlous finances; and an appeal court ruling that shows the value of careful drafting of dispute resolution provisions.

Analysis
Bond Calls: The Essential Cocktail of Considerations – Provided Shaken, Not Stirred
Bond markets have been in upheaval recently, with knock-on impacts on decisions on whether to make or defend calls on performance security on construction projects. Louise Woods, Ciara Ros, Jarrod Gutsa and Lauren-Emma Parrott of Vinson & Elkins examine the issues.

CL guides
The Construction Act
In our latest CL Guides series article Jess Tierney of DLA Piper explains why it is important to understand the Construction Act.

Adjudication
Adjudicator took too narrow a view of jurisdiction
Stephanie Geesink, Of Counsel, and Dom Turner-Harriss of Watson Farley & Williams LLP examine a case where the court decided that the adjudicator had taken too narrow a view of their own jurisdiction. Natural justice had also been breached.

Enforcement
‘Going Rogue’ Revisited: Financial sanctions and their impact on enforcement proceedings
Vijay K Bange and Paul-Raphael Shehadeh of Duane Morris consider problems relating to the enforcement of court or arbitration decisions against a background of international sanctions.

Contracts
Consequences of entering into a contract with a dormant company
Stephen McKenna of Quigg Golden Limited (who acted on behalf of WRB (N.I.) Limited in these proceedings) analyses a case which highlights the consequences of entering into a contract with a dormant company and demonstrates that Courts are likely to enforce an adjudicator’s decision by way of a refusal to issue a stay of execution.

Contract management best practices to limit the risk of disputes
In the second part of his article on contract management best practice Guillaume A Hess of King & Spalding says that getting the contract right at the outset is key, and argues that introducing collaborative processes is an effective disputes risk reduction strategy.

Insurance
Beware of average meanings
Insurance expert John D Wright of JD Risk Associates examines what the word ‘average’ means in insurance policies. Insurers and brokers might offer guidance, but professional advice should be sought, he warns.

Alternative dispute resolution
Tackling poor payment practices and raising awareness of ADR tools
In our latest alternative dispute resolution series article Kirsti Olson of Dentons UK and Middle East LLP looks ahead to the results of the government’s Payment and Cashflow Review.