Legal terms explained: True value adjudications

A ‘true value’ adjudication refers to an adjudication in which a party seeks to obtain a decision on the actual value of works, typically following a ‘smash and grab’ adjudication.

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News in Brief – Aug/Sept 2019

Main contractors behind the construction of the Aberdeen Western Peripheral Route are preparing to go to formal dispute resolution with Transport Scotland over a claim for additional payment, a trading statement from Galliford Try has revealed.

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Crossrail fiasco can expect further scrutiny

Another scathing report from a parliamentary select committee has further shredded the remnants of the UK’s reputation for infrastructure procurement. We reported two issues ago (CL Vol 30 No 5) on the evidence session of the Public Accounts Committee (PAC) which brought out some astonishing revelations in the wake of the discovery that the Crossrail project was late and over budget.

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Construction Law – July 2019

Editor’s comment
TeCSA scheme limits adjudicator costs
Editor Nick Barrett says TeCSA’s adjudication cost saving initiative is to be welcomed, but asks whether adjudicators are being asked to shoulder an unwelcome burden of risk.

News
This month’s news round up includes the launch of a low value adjudication scheme; an update on developments two years after the Grenfell Tower fire; and an international arbitration survey looking at construction disputes.

Legal terms explained
Philip Parrott of Herbert Smith Freehills LLP discusses concurrent liability.

Guest editor
How can lawyers create a successful alliance?
Guest editor Professor David Mosey, Director of the Centre of Construction Law and Dispute Resolution at King’s College London, examines a successful example of supply chain collaboration and argues that it should boost public sector clients’ confidence that they can take a lead in creating contractually robust alliances.

Legislation state of play table
Our regular round up of legislation affecting construction as it passes through the UK and EC legislative systems comes from Dentons UK and Middle East LLP whose Mark Macaulay and Tracey Summerell provide a commentary on Theresa May’s green legacy.

Reports from the courts
Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP provide our regular round up of cases of most interest to construction, focusing on a rare example of a court refusing to enforce an adjudication due to fraud; and a decision that might result in an increase in collateral warranties being sought by house purchasers.

Collaboration
Collaborative construction’s time has come
Editor Nick Barrett reports on two new books that stress the need for systemic change in construction’s procurement and contractual procedures, and suggest ways forward. Real life examples show it can be done, he says.

CL guides
CL guide – Practical completion
Our latest Construction Law Guide from Tom Manley of DLA Piper explains what practical completion means and examines some of the issues surrounding it.

Arbitration
Witness conferencing in international arbitration
David Robertson, Emma Knight and Frederic Akiki of White & Case LLP examine the use of witness conferencing – often used in complex disputes – in international arbitration. It can be a powerful tool for expeditious and cost-effective hearings of contested witness evidence, they argue.

Expert witnesses
To be or not to be an expert witness
Anne Wright of Lawrence Stephens and barrister James Davison of 3PB provide practical guidance on selecting an expert witness, and advise witnesses how to behave once appointed.

Claims and variations
Maeda and China State v Bauer
Michael Sergeant and Huw Wilkins of HFW consider a recent decision of the Hong Kong High Court dealing with two issues that commonly arise on projects but which rarely come before the courts, namely the validity of claims notices under a contract and the valuation of variations, both of which arose on the ‘world’s most expensive railway’.

Mediation
What Hammurabi’s construction law teaches us
Leading construction mediation specialist Amanda Bucklow says easily understood rules covering ancient contractual relationships were models of clarity, simplicity and coherence, which has been lost to the modern industry. Modern understandings in areas like neuroscience point the way towards new contractual models, she suggests.

Insurance
Contract works insurance and its limitations
Insurance expert John D Wright of JD Risk Associates explains how ‘all risks’ insurance might not in fact cover all risks. Additions to the basic cover might be advisable, he warns.

Alternative dispute resolution
Technology in mediations: keep the human touch
In the latest of our alternative dispute resolution series, Esther McDermott and Tracey Summerell of Dentons UK and Middle East LLP consider the use of technology in mediations and recent advice for mediators on the topic published by the Centre for Effective Dispute Resolution (CEDR).

MPs criticise slow progress on Grenfell reforms

Efforts to reform the building and fire safety regime and remove dangerous ACM cladding from existing buildings have been “far too slow” during the two years since the Grenfell Tower fire, say MPs.

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Aberdeen bypass contractors prepare for dispute resolution

Main contractors behind the construction of the Aberdeen Western Peripheral Route are preparing to go to formal dispute resolution with Transport Scotland over a claim for additional payment, a trading statement from Galliford Try has revealed.

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Firms suspended from Prompt Payment Code

More construction companies have been suspended from the Prompt Payment Code for failing to pay suppliers on time, including Galliford Try, Ferrovial Agroman and Severfield (Design & Build).

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Construction companies unlikely to win insurance disputes

Firms in construction are more likely to have public disputes with their insurers than businesses from any other sector, but will only be successful in a quarter of these cases according to research by Mactavish.

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Modern slavery consultation targets better reporting

Government has launched a consultation on proposals to strengthen and improve transparency in supply chains after publishing its response to an Independent Review of the Modern Slavery Act.

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