Construction Law: October 2016

Editor’s comment    
Survey reveals procurement gulf
Editor Nick Barrett says Brexit might open an opportunity for worthwhile changes to infrastructure procurement rules, but a survey has revealed the large gulf between what procurement professionals on the client side would like to see and what construction suppliers will find beneficial.

News                  
Our regular news round up includes the launch of a long delayed government consultancy framework; a survey that claims construction is especially vulnerable to slavery; and another survey that reveals a need for greater transparency of the public sector project pipeline.

Legal terms explained
Alistair Price of Pinsent Masons explains good faith.

Guest editor
Contracts can support BIM 
Our Guest Editor Professor David Mosey, Director of the Centre of Construction Law and Dispute Resolution at King’s College London, reviews the legal issues surrounding Building Information Modelling. Recent research points the way towards contracts and procurement that can help achieve BIM Level 3 ambitions, he argues.

Legislation state of play table 
Clyde & Co review the progress of legislation affecting construction as it passes through the UK and EC legislative systems. Chris Kerr provides a commentary on planning for nationally significant infrastructure projects.

Reports from the courts 
Our latest round up of the court cases of most interest to construction from Andrew Croft and Natalie Ledger of Beale & Company Solicitors LLP focuses on a decision highlighting that the natural meaning of the words used will be the primary consideration in the interpretation of construction contracts; and another underlining the importance of agreeing and documenting contract variations.

Contracts monitor
Watch out for paper tiger 
Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of RIBA’s Concise Building Contract 2014. More careful wording could make it easier to use in places, he argues.

Design information
Design information – a modest proposal
Marion Rich, Director of Legal and Contractual Affairs of the British Constructional Steelwork Association, sees a steady and rapidly growing stream of problems arising from design information shortcomings. Rather than pursuing new initiatives, focus on making existing ones work, she argues.

Contracts
Fee and overhead under NEC3
Laura Tetlow of Pinsent Masons LLP looks at the perceived lack of understanding of what ‘fee percentages’ in NEC3 Engineering and Construction Contracts (NEC3 ECC) are intended to include, highlighting some common pricing conundrums.

Digital construction
Legal implications for BIM Level 3
A fundamental rethink about contractual arrangements will be needed to realise the government’s ambitions for Digital Build Britain, says Shona Frame of CMS. BIM Level 3 will throw up new challenges that will need to be met with appropriate contractual solutions.

Payments
Payment schedules – simple or stitch-up?
Contractors were stunned by a recent court decision that seems to undermine the use of payment schedules as a means of simplifying complicated payment regimes. Vijay Bange of Trowers & Hamlins explains the background and predicts repercussions.

Overseas
Setting up shop in Qatar
Football’s World Cup will be held in Qatar in 2022, creating even more opportunities for construction companies from the UK. Andrew Jones of Dentons reviews the legal and commercial hurdles to be overcome.

Insurance
Subrogation rights – simple in theory complex in practice
Insurance expert John D Wright of JD Risk Associates examines the case law relating to how subrogation impacts on claims under policies. Subrogation rights can be lost because of contractual terms, he warns.

Alternative dispute resolution
Brexit brings unwelcome uncertainty 
Our latest alternative dispute resolution series article by Russell Banfi and Tim Axtmann of Clyde & Co warn that uncertainties surrounding Brexit may contribute to damaging London’s status as an arbitration centre.