Tender prices to shrink post-Covid

Construction contractors will continue to face damaging market volatility throughout 2021 due to the Coronavirus pandemic, with firms competing over a relative lack of new opportunities and tender prices expected to reduce by up to 2.5%, according to market analysis by Mace.

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Consider Covid consequences in bids, lawyers warn

Contractors must take account of how the consequences of Covid-19 will impact on both price and timeframe when bidding for new work, Beale & Company has urged after the Government revealed that up to £37Bn worth of infrastructure and construction contracts will be brought to market over the next year.

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Insolvent firms can adjudicate, Supreme Court rules

The Supreme Court has provided clarity that insolvent companies can refer disputes to adjudication, after a ruling which saw Bresco Electrical Services – in liquidation – succeed in its appeal to adjudicate in a dispute with fellow electrical contractor Michael J Lonsdale.

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News in Brief: 19 June 2020

Housing Secretary Robert Jenrick is being pressed to disclose documents relating to his unlawful decision to grant planning permission for the proposed Westferry Printworks development in Tower Hamlets.

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Lead market cartel members face £11 million in fines

Two of the UK’s largest suppliers of rolled lead have admitted taking part in anti-competitive arrangements and could face fines of more than £11 million, it was announced today.

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Scottish sites return to work

Work can now resume on non-essential Scottish construction sites after First Minister Nicola Sturgeon gave the industry the green light to proceed to the ‘soft start’ phase of its restart plan on Thursday. The move has been welcomed by the sector as a “huge relief”.

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PFI disputes threat as deals near end

Public contracting authorities risk underestimating the time, resources and complexity involved in managing the end of PFI contracts, and many are expecting to face formal disputes, according to the National Audit Office. A collaborative partnership approach will be key to a smooth transition, lawyers urge.

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Unsustainable contracts could be terminated, says Cabinet Office

Eventual exit from supplier relief arrangements applied in response to the Covid-19 crisis should soon start to be mapped out as the government moves into the recovery phase of its response to the pandemic, a new Procurement Policy Note says. Contract variation or even termination may need to be discussed if a contract is no longer seen as relevant or viable, it advises.

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Procurement fraud figures the ‘tip of the iceberg’

Close to a quarter of English councils have reported experiencing cases of fraud and corruption within procurement over a 12 month period, with the true scale of the issue expected to be far worse. Construction’s status as a high risk area is no new thing, one lawyer emphasises.

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News in Brief roundup: 12 June 2020

A tax law specialist has warned that a delay to the introduction of the new domestic reverse VAT charge for construction services due to the impact of Coronavirus on the sector may have an unforeseen consequence on businesses’ cash flow.

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