Editor’s comment
No easy rides for late payment reform
New rules threaten to ban late payers from government projects, but Editor Nick Barrett reports that there is scepticism whether the new rules will be enforced strongly enough.
News
This month’s news roundup highlights guidance on improving quality management in construction, details of new government rules around late payment and a public inquiry into two Scottish hospital projects where safety concerns have been raised.
Legal terms explained
Olivia Liang of Herbert Smith Freehills LLP explains delay liquidated damages.
Guest editor
Fear of the unknown
Guest editor Stephen Woodward, a risk management consultant, asks whether the early warning system (EWS) approach is helping to produce fit for purpose risk management. He says it could if the industry is prepared to take confident steps forward.
Legislation state of play table
This table, prepared by Dentons UK and Middle East LLP, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to UK legislation and EU Directives, the table includes notes highlighting discussion papers issued by both government and non-government organisations and commentary on the latest developments. Roy Pinnock considers the latest changes to the community infrastructure levy.
Reports from the courts
Our regular round up of the cases of most relevance to construction from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP focusses on a case highlighting that the courts will accept the natural and ordinary meaning of words unless there is evidence to the contrary; and another underlining the importance of clearly pleading your case and fully particularising specific breaches and how they lead to the losses claimed.
FIDIC Emerald Book
Emerald light shines on underground risks
Editor Nick Barrett outlines the key aspects of the Emerald Book, a new contract launched by FIDIC specifically for use on projects involving tunnelling or other underground works. Proper risk allocation lies at the heart of its ambition, he reports.
CL guides
Claims for time, loss and expense
The latest in our series of guides comes from Abigail Holmes of DLA Piper who explains the background to contractual claims and advises what employers and contractors should pay particular attention to.
Practical completion
Practical completion – easier to recognise than define
Mark Lawrence of Macfarlanes LLP analyses the reasons why disputes arise over practical completion and examines relevant case law, including a recent appeal court ruling.
Letters of intent
Letters of intent – a necessary risk?
Oli Macrae of Foot Anstey analyses the reasons for uncertainty that surround letters of intent. Conduct of a party to a contract can result in it being unenforceable, he warns.
Legislation
Sloppy housebuilders to get the bullet?
Housebuilders have come under fire for the standard of new properties. Christobel Smales of Cripps Pemberton Greenish asks whether the New Homes Ombudsman will offer the silver bullet for redress that new home owners have been waiting for?
Alternative dispute resolution
Don’t let tiered agreements end in tears
Vijay Bange and Tanya Chadha of Trowers & Hamlins LLP examine recent court decisions affecting tiered alternative dispute resolution agreements. While eminently sensible for long term contracts and relationships, without care they could become obstacles to resolving disputes on shorter term situations.
Insurance
Economic loss and insurance
Insurance expert John D Wright of JD Risk Associates examines the insurance implications of the difference between economic loss in tort and losses that flow from a specific event. Relevant case law is extensive and there is a common thread linking termination of liability for losses.
Alternative dispute resolution
Dispute resolution clauses
In our latest alternative dispute resolution series article Tracey Summerell of Dentons UK and Middle East LLP looks at a recent decision highlighting the support the courts will give to dispute resolution clauses.