Editor’s comment
Franchise fiasco demands procurement reform
Editor Nick Barrett says the Transport Select Committee’s report on the Intercity East Coast franchise collapse reveals as much about the state of public sector procurement as it does about franchising as a business model.
News
Our regular news roundup includes a plea for the government to review the role of Crown Representatives after Carillion’s collapse; a report into the failings of the East Coast railway franchise; and details of a crackdown on directors who dissolve companies to avoid paying debts.
Legal terms explained
Philip Parrott and Noe Minamikata of Herbert Smith Freehills LLP explain what is meant by misrepresentation.
Guest editor
Penalties freed from straightjacket
In Cavendish Square Holding BV v Makdessi the Supreme Court rewrote the penalty rule. Three years on, guest editor Richard Ashmore of Herbert Smith Freehills LLP revisits how Cavendish established the current approach to penalties.
Legislation state of play table
Clyde & Co LLP present a round up of the progress of legislation affecting construction as it passes through the EC and UK legislative systems. Tim Axtmann and Ross Howells comment on the Infrastructure and Project Authority’s annual report on major projects.
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 focuses on an appeal court decision that enforces clear exclusions of liability in commercial contracts; and an appeal in the Scottish courts that will provide comfort to consultants worried about clauses stating that they are fully responsible for design.
Contracts monitor
Practice Note worth paying attention to
Contracts monitor Michael Phipps, Principal of Thurston Consultants, ends his scrutiny of the JCT Tendering Practice Note 2017 with a look at the section designed to request information about tenderers. High profile insolvencies suggest this information, if sought, is not properly provided or considered, he warns.
CL guides
Document management
In the latest in our Guides series from DLA Piper Anthony Willis and Harry Thompson explain why a proper approach to managing documentation is essential, especially when disputes arise.
Penalties
‘Case of the century’ sets new rules on penalties
Cecily Davis of Fieldfisher examines what was billed as the case of the century, which painted a tawdry picture of the UK development sector. Case law has now established that the rule on penalties still exists but its application is more limited and proportionate consequences are required.
Technology
Drones are here to stay and to help
Drones have the potential to deliver massive cost savings to construction, but their use has not been without controversy. Shona McCusker of CMS looks at the legal implications surrounding their use and warns of tightening regulation.
Funding
Streamlining private sector development lending
Securing finance for developments can be a complex and lengthy process but Anne Wright of Lawrence Stephens Solicitors suggests six steps that can be taken to speed things up. Overcautious lenders often misunderstand project risk, she warns.
Insurance
The role of insurance brokers
Insurance expert John D Wright of JD Risk Associates explains the valuable role that insurance brokers can play in ensuring that cost effective cover is provided. They can more than justify their cost, he argues, but need to be carefully selected.
Payment
When does the pay less notice regime apply?
Laura Lintott of Dentons UK and Middle East LLP analyses the pay less notice regime in the wake of last year’s Court of Appeal ruling on whether the Construction Act applies to final payment applications made after contract completion or termination.
Alternative dispute resolution
Adjudication and insolvency
Our latest alternative dispute resolution series article from Russell Banfi of Clyde & Co LLP examines what to expect when liquidators of an insolvent party initiate an adjudication.