Firms warned over rising insurance premiums and eroded cover

Insurance premiums have been ‘turbocharged’ for the construction sector since Covid-19 lockdown commenced and firms face increased risk that current policies may not pay out on claims, it has been warned.

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Radical planning system reforms laid out

Proposed reforms to the planning system which aim to speed up the process of getting new homes built have been met with scepticism by lawyers and planning professionals. A series of proposals – including automatic approval in principle for developments in designated growth areas that meet rules set out in Local Plans – were detailed by the government in its Planning for the Future white paper.

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Construction Law: August/September 2020

Editor’s comment
Multi-challenges forcing pace on procurement reform
Amid signs that procurement is at last rising up the political agenda, Editor Nick Barrett reports that increasing pressures are forcing the pace of change. Using tribunals instead of the High Court for challenges to contract awards is one change that has been suggested.

News
This month’s news roundup features details of the new draft Building Safety Bill, hopes for the wider adoption of Project Bank Accounts following developments on High Speed 2 and guidance on future proofing construction contracts in light of Covid-19.

Legal terms explained
Michael Sharp of Herbert Smith Freehills LLP explains virtual signing and electronic signing.

Guest editor
Connectivity and collaboration to keep construction safe
Guest Editors Kathryn Noble, Amanda Stubbs, and Charlotte Clayson of Trowers & Hamlins LLP say construction could benefit from Covid-19’s impact on adoption of digital technology. As well as fostering innovation, new legal issues will be created, they warn.

Legislation state of play table
Dentons UK and Middle East LLP provide our regular round up of legislation affecting the UK as it passes through the legislative process. Tracey Summerell outlines the implications of the The Corporate Insolvency and Governance Act 2020.

Reports from the courts
Our regular round up of the cases of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, focusing on one that underlines the courts’ reluctance to support challenges to the jurisdiction of adjudicators; and another that reinforces the position that ‘the prevention principle is not an overriding rule of public or legal policy’ and that it is possible to contract out of its application.

Book review
High praise for invaluable Construction Law reference book
Professor David Mosey, Director, King’s College London Centre of Construction Law and Dispute Resolution, reviews the latest edition of Julian Bailey’s book Construction Law which is praised for its comprehensive coverage, scholarship and good value.

CL guides
Alliance Contracting
Our latest CL Guide is from Rachel Chaplin of DLA Piper and explains what Alliance Contracting means and how it works. Changes in approach are needed to make it successful.

Insolvency
Changes to the UK Insolvency Regime and the Impact on Supply Contracts
Vijay Bange and Candice Light of Duane Morris describe how the new insolvency legislation making it difficult or impossible for suppliers to terminate contracts where a company has entered into a defined insolvency procedure will work. Far reaching impacts can be expected.

Disputes
How are construction disputes evolving?
The findings of two major surveys reveal a changing pattern of disputes in construction, as Amy Roberts, Adrian Bell and Shona Frame of CMS Cameron McKenna Nabarro Olswang LLP explain. The impact of Covid-19 and Brexit are still to be felt, they warn.

Fire safety
Form EWS1 – a better solution needs to be found
Will Buckby and Ian Masser of Beale & Co warn consultants that they should avoid taking on work under Form EWS1 – designed to provide assurance that a high rise building is fire safety compliant – which imposes unlimited liability on them. Professional indemnity insurance could be compromised by its use, they advise.

Planning
Measures to help the progress of DCO projects
Infrastructure planning law specialist Angus Walker of BDB Pitmans says keeping planning and consenting of nationally significant projects going will help reduce the depth of the coming recession as well as speeding up the recovery. There are practical steps to be taken that will help.

Insurance
Costs – the hidden element
Insurance expert John D Wright of JD Risk Associates looks at the extent to which insurance policies offer cover for costs, such as legal costs, in addition to losses suffered as a result of an insured event occurring. Policies should be read with care, he warns.

Alternative dispute resolution
Make mediation compulsory?
In the latest of our alternative dispute resolution (ADR) series, Tracey Summerell of Dentons UK and Middle East LLP asks whether it is time for mediation to be made compulsory.

Connectivity and collaboration to keep construction safe

Guest Editors Kathryn Noble, Amanda Stubbs, and Charlotte Clayson of Trowers & Hamlins LLP say construction could benefit from Covid-19’s impact on adoption of digital technology. As well as fostering innovation, new legal issues will be created, they warn.

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Reports from the courts: August/September 2020

Our regular round up of the cases of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, focusing on one that underlines the courts’ reluctance to support challenges to the jurisdiction of adjudicators; and another that reinforces the position that ‘the prevention principle is not an overriding rule of public or legal policy’ and that it is possible to contract out of its application.

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High praise for invaluable Construction Law reference book

Professor David Mosey, Director, King’s College London Centre of Construction Law and Dispute Resolution, reviews the latest edition of Julian Bailey’s book Construction Law which is praised for its comprehensive coverage, scholarship and good value.

This story is only available to subscribers to the printed edition of Construction Law. If you have a subscription please log in to read the rest of the story.

Construction Law Guide to: Alliance Contracting

Our latest CL Guide is from Rachel Chaplin of DLA Piper and explains what Alliance Contracting means and how it works. Changes in approach are needed to make it successful.

This story is only available to subscribers to the printed edition of Construction Law. If you have a subscription please log in to read the rest of the story.

Changes to the UK Insolvency Regime and the Impact on Supply Contracts

Vijay Bange and Candice Light of Duane Morris describe how the new insolvency legislation making it difficult or impossible for suppliers to terminate contracts where a company has entered into a defined insolvency procedure will work. Far reaching impacts can be expected.

This story is only available to subscribers to the printed edition of Construction Law. If you have a subscription please log in to read the rest of the story.

Waste plant operator in receivership after losing court battle

A joint venture company operating a private finance initiative waste plant in Essex has gone into administrative receivership. This follows a recent Technology & Construction Court ruling that saw the Urbaser Balfour Beatty (UBB) company ordered to pay Essex County Council more than £10M over problems with the Tovi Eco Park facility in Basildon.

To read more of this and every other news story on this site, please log in with your Construction Law membership account details. If you don't have an account, you can get free access to the news on this site and receive a free newsletter on Fridays by creating a Newsletter account. See the panel to the right.

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How are construction disputes evolving?

The findings of two major surveys reveal a changing pattern of disputes in construction, as Amy Roberts, Adrian Bell and Shona Frame of CMS Cameron McKenna Nabarro Olswang LLP explain. The impact of Covid-19 and Brexit are still to be felt, they warn.

This story is only available to subscribers to the printed edition of Construction Law. If you have a subscription please log in to read the rest of the story.