Speedier payments ordered on HS2

Tier one contractors working on High Speed 2 have been ordered to accelerate payments to their suppliers, with approved payments to be made straight away where possible.

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No return to sites yet, Scottish guidance says

Non essential construction sites should remain closed in Scotland until further notice, new guidance from the Scottish Government makes clear despite recent pleas from the industry to allow their reopening. The continued closure of sites is likely to lead to a rise in disputes, as well as insolvencies that may come as a result, lawyers warn.

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Firms face disputes risk over difficulty tracking down emails

Concern over the ability of firms involved in architecture, engineering and construction schemes to retrieve important project information held in emails – which may be critical in avoiding disputes – has been revealed in a new survey. Good record keeping can make or break a claim or defence in a construction dispute, one lawyer says.

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Courts seek views on success of remote hearings

The Civil Justice Council has launched a rapid consultation to assess the effectiveness of changes to the operation of the civil justice system that have been implemented in response to Covid-19, such as expanding the use of remote hearings. Beale & Co’s James Vernon says the consultation will assist in understanding the impact of the adjusted working practices, and highlights some of the key challenges being experienced in the courts.

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Further disruption expected as Covid-19 delays projects

Almost four in five project managers are anticipating future disruption to projects they are working on as a result of Coronavirus, with 44% reporting that the pandemic has already caused their main scheme to be delayed. Parties should look carefully at both their contracts and their records, one lawyer says.

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Clients urged to protect supply chains as market downturn forecasted

Construction clients must ‘remain alive’ to the risk of supplier insolvency, contract liabilities and material shortages as the industry prepares for an easing of lockdown restrictions, consultant Turner & Townsend has said.

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Call for attitude shift on nuclear procurement

Perceptions of procurement need to change in the construction industry away from being seen as a barrier to progress and towards becoming the ‘enabler’ of productivity, a new report from Constructing Excellence says.

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Coronavirus challenges explored in May issue of CL

Covid-19 and how the industry can cope with it features in several of the in-depth articles in this month’s issue of the Construction Law print journal, which will be arriving exclusively on subscriber’s desks around now.

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Construction Law: May 2020

Editor’s comment
The paper trail to survival
Amid conflicting advice on whether to open sites, construction companies are advised to maintain their own records to be able to prove what guidance they received about safe working during the pandemic and that they have acted properly, in the event of health and safety prosecutions or claims from workers or their families.

News
This month’s news roundup includes concern that construction firms have seen pandemic cover removed from their policies, details of a landmark case which saw the TCC reject a contractor’s attempt to halt an adjudication due to the pandemic, and market analysis stating that recently awarded contracts have been put on hold.

Legal terms explained
Karan Talwar of Herbert Smith Freehills LLP explains the principle of set-off.

Guest editor
Taxing times for construction
New tax rules for self employed contractors that place new burdens on end-users of their services have been put off until 2021, but construction faces major changes in its ability to source skills only as and when needed. Guest Editors Vijay Bange and Nic Hart of Duane Morris say a culling process may already be underway.

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 looks at a dispute underlining that express dispute resolution clauses should be included in all contracts; and another that highlights the difference between a negligent act and a negligent failure to act.

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. Tracey Summerell and Esther McDermott comment on government response to the Construction Act consultation.

Alternative dispute resolution
Engage in settlement talks or pay the price
In our latest Alternative Dispute Resolution series article Tracey Summerell and Sonia Vilar of Dentons UK and Middle East LLP consider a case stressing that even parties with a strong belief in their case must engage in settlement discussions, including ADR, or risks costs sanctions.

CL guides
Force majeure, frustration and construction contracts
Ross Galbraith of DLA Piper provides the latest in our CL Guides series, with a topical look at how force majeure and frustration can impact on construction contracts.

Industry reform
Why are there so many insolvencies in construction?
Charles O’Neill of Contract Dynamics Consulting and highly experienced delivery leader Ian Williams examine steps that clients and contractors can take in the early stages of projects to influence success, reviewing current bidding and contracting processes, and making recommendations for change.

COVID-19
Life after lockdown
David Cordery of Trowers & Hamlins LLP looks ahead to what the post lockdown construction world might look like. The long term impact of Covid-19 could be to hasten adoption of new technologies and ways of working, he suggests.

Litigation
Henderson principle revisited
Vijay Bange and Tanya Chadha of Duane Morris examine a recent court decision shedding light on whether parties have to bring all of their claims, or defences, at once. The case provides a test of the long established Henderson principle.

Contracts
Standard Forms of Contract: FIDIC vs NEC
Rebecca Shorter of White & Case LLP examines the approaches taken to contract management by the FIDIC and NEC contract suites. Recent editions show more sophisticated management of construction and engineering projects, and adoption of measures to increase their appeal as standard forms.

Insurance
The intention of the parties must prevail
Insurance expert John D Wright of JD Risk Associates explains that the courts will make decisions based on what parties in disputes over insurance policy interpretation intended, so obvious errors in drafting can be rectified.

Taxing times for construction

New tax rules for self employed contractors that place new burdens on end-users of their services have been put off until 2021, but construction faces major changes in its ability to source skills only as and when needed. Guest Editors Vijay Bange and Nic Hart of Duane Morris say a culling process may already be underway.

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