Construction Law October 2017

Editor’s comment
Big battalions battle looming?
A new report says the UK is putting too much into ever larger public procurement packages. Editor Nick Barrett says the report comes out strongly on the side of smaller suppliers.

News
Our news round up this month highlights launch of a new procedure for disputing invoices raised under HSE’s fee for intervention cost recovery scheme; a survey showing the scale of late payment problems in Scotland; and calls for harsher penalties for modern slavery offences.

Legal terms explained
Karan Talwar and Michael Mendelblat of Herbert Smith Freehills LLP explain liquidated damages.

Guest editor
The dearest things in life might be free!
Guest editor Nicholas Maciolek of Atkin Chambers says that a recent court decision that attracted comment on duty of care issues missed the point. The case was more interesting because of what it says about the scope of a professional’s duty in negligence, he argues.

Legislation state of play table
Our regular update on the progress of legislation affecting construction as it passes through the UK and EC legislative systems from Clyde & Co. Lois Putnam and George Bazinas of Clyde & Co comment on the Infrastructure and Projects Authority’s annual report on major projects.

Reports from the courts
In our regular round up of the court decisions of most significance to construction Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP examine a case concerning exemption clauses that went to the appeal court; and another highlighting that contractors need to act quickly to submit extension of time claims.

Contracts monitor
Legislation leads to contract complexity
Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of the JCT Repair and Maintenance Contract, focussing on its tendering aspects. Legislative changes mean the contract is more complex than before, with no fewer than 27 terms needing definitions compared to ten previously.

CL guides
CL Guide to: Time in construction contracts
Rachel Chaplin of DLA Piper examines the operation of time in contracts in the latest of our guides to construction law series. Operating the contractual machinery correctly is crucial to the success of time related claims.

Contracts
NEC4 and PPC2000: alliance contract options and legal principles
Professor David Mosey and Jessica Twombley of King’s College London Centre of Construction Law and Dispute Resolution take a critical look at the NEC4 draft project alliance contract. They advise clarification in places to avoid disputes arising from differing interpretations.

Insurance
No cover for actions deemed criminal
Insurance expert John D Wright of JD Risk Associates says liability insurance will be under the spotlight following the Grenfell Tower tragedy. Heavy fines and imprisonments could be handed out by the courts.

Arbitration
Courts prove ready to review arbitral awards
Vijay K Bange and Tanya Chadha of Trowers & Hamlins LLP analyse a case that provides the first example in construction of a successful challenge under the Arbitration Act 1996 on the basis of fraudulent misconduct.

Contract management
Belt and road projects – legal issues when East meets West
Barrister Mathias Cheung of Atkin Chambers outlines the opportunities and potential legal issues presented by China’s massive Belt and Road Initiative. Proper pre-contractual preparations and contract management are essential for success.

Warranties
Collateral warranties: key issues
The key issues surrounding collateral warranties are examined from the viewpoint of their potential beneficiaries, by Shaun Tame, Counsel, Dentons.

Alternative dispute resolution
Mediation – a change in thinking?
In our latest alternative dispute resolution series article Chris Kerr of Clyde & Co reviews a court decision that shows a refusal to engage in mediation will not always trigger cost sanctions.