Construction Law: November 2018

Editor’s comment
New initiative must not be old wine in new bottles
Editor Nick Barrett says the late and unlamented Private Finance Initiative, killed by the Chancellor in the Budget, must not be replaced by a disguised version of the old model, or a new one that achieves nothing better.

News
This month’s news roundup includes a call for government to improve transparency over the outcomes of its biggest infrastructure projects, the result of Arcadis v Amec in the Court of Appeal and a new NEC4 practice note on offsite modular construction.

Legal terms explained
Richard Ashmore
and Noe Minamikata of Herbert Smith Freehills LLP explain the prevention principle.

Guest editor
New contracts and procurement routes needed
Guest editor Richard Bayfield, Project Director, Gradel Quad Development at New College Oxford & Member of Project Board, Lambeth Palace Library, asks what lessons need to be learned in the face of the growing tide of criticism of UK construction. Fresh thinking on procurement, risk and contract forms is urgently needed, he argues.

Legislation state of play table
Clyde & Co LLP compiled our regular update on the progress of legislation affecting construction making its way through the EC and UK legislative systems. Lois Putnam and Katie Boardman of Clyde & Co LLP provide a commentary on a new ‘key principles’ guide from the Construction Industry Council.

Reports from the courts
Our regular round up of key cases from the courts comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, focussing on an appeal court decision with implications for extensions of time; and a Northern Ireland court ruling on a dispute concerning a net contribution clause.

Contracts monitor
New laws force contract changes
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, scrutinises the JCT Design and Build Contract which has been popular since its 1981 introduction. Although flexible, it is not suitable where the contractor is only to provide a design for part of the works, he warns.

CL guides
CDM Regulations
In our latest Guide to construction law topics from DLA Piper Rachel Chaplin explains how the regulatory regime of the CDM Regulations works.

International
The FIDIC Silver Book: just a starting point
Cecily Davis of Fieldfisher analyses the 2017 FIDIC Silver Book, the most used contract internationally for major infrastructure projects, asking whether the strong recommendation that its risk/reward balance between parties should not be changed is being observed.

Contracts
Making a contract – does it do what it says on the tin?
Kwadwo Sarkodie of Mayer Brown International warns that knowing the devil is in the small print is no help if the contract is signed without being read at all. Also be careful that the contract covers what you think it does, he warns.

Adjudication
Adjudication and liquidation
Vijay Bange and Manpreet Kandola of Trowers & Hamlins see a resurgence in adjudication in the face of the rising costs of litigation and arbitration, against a background of growing insolvency worries. Can companies in liquidation use adjudication to pursue claims, they ask?

Litigation
Appeal court upholds privilege
Gurbinder Grewal and Natalia Fludra of Dentons UK and Middle East LLP examine the implications of a recent appeal court ruling that clarifies the scope of legal professional privilege.

Insurance
Design clauses – draft with care
Insurance expert John D Wright of JD Risk Associates warns that care needs to be taken with drafting design clauses in insurance contracts. Insurers themselves have fallen victim to sloppy policy drafting.

Alternative dispute resolution
Adjudication and set-off
In our latest alternative dispute resolution series article Emily Morris of Clyde & Co LLP examines a recent decision that highlights the approach the courts will take to set-off in adjudications.