Reports from the courts: October 2024

Our latest round up the court decisions of most interest to construction comes from Andrew Croft, Benjamin Spannuth and Daniela Miklova of Beale & Company Solicitors LLP, who look at a Court of Appeal ruling relating to termination rights; and another that says true value adjudications cannot commence before the amount awarded in a previous adjudication regarding a dispute in the same payment cycle is paid.

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Supply chain compliance issues in Saudi Arabia

James Daniell and Julian Haslam-Jones of Alvarez & Marsal Disputes and Investigations Dubai office consider the growing importance of compliance issues in Saudi Arabia. Non-compliance with local laws and international standards can result in financial penalties, delays, additional costs and reputational damage, they warn.

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Construction Law Guide to: Variations

The latest in our Construction Guides series comes from Daniel Warren of DLP Piper LLP who explains what you need to know about variations.

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Key recommendations of the Grenfell Tower Inquiry Report

Katherine Metcalfe of Pinsent Masons examines the key recommendations of the Grenfell Tower Inquiry Report that she says makes for sobering reading. The residents of the Grenfell Tower were comprehensively let down by a broken regulatory system whose repair will have a far reaching impact on the construction industry.

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Grenfell Inquiry findings

Ed John and Nadine Obayda of Keystone Law focus on the implications for manufacturers of construction products following publication of the Grenfell Tower Inquiry Report. Litigation is expected to follow now the report has been published, and residents and leaseholders with dwellings unfit for habitation will generally find it easiest to claim losses against the contractor or developer under the DPA 1972.

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Where’s the trigger?

Karen Gough of 39 Essex Chambers examines a recent case concerning a claim under the NHBC’s Buildmark certification and insurance scheme. A key question raised was when does time start to run for claims under the scheme; an issue needing further clarification.

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Will collateral warranties be construction contracts?

Collateral warranties are not contracts according to a Supreme Court ruling that overturns a position established eleven years ago by the Appeal Court. Scott Stiegler, Bradley Linday and Xara Kaye of Vinson & Elkins say that parties wanting to capture the benefits of adjudication might now include express adjudication clauses in collateral warranties.

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Delayed Completion Coverage

Insurance expert John D Wright warns against overlooking revenue losses from delayed completions of projects when seeking insurance cover. Increasing use of private finance on public sector schemes will likely lead to increasing demand for such policies.

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Mediation in the Middle East

Our regular alternative dispute resolution series article comes from Suzannah Fairbairn and Melissa Mallon of Dentons UK and Middle East LLP who report that mediation is seeing increasing use to resolve disputes in the Middle East.

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Legal terms explained – Disruption

Disruption typically refers to any hindrance or interruption to a contractor’s regular progress resulting in it incurring additional cost due to lower productivity in executing the impacted work.

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