Contract terms overhauled by Network Rail

Major construction employer Network Rail is making significant changes to contracts including a requirement for suppliers to pay their subcontractors within 28 days and remove the use of retentions.

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NDA improves Sellafield project delivery

Major decommissioning projects at the Sellafield nuclear site are still predicted to deliver late and over budget despite improved performance thanks to better project controls, risk management and contingency planning, according to a new report from the National Audit Office (NAO).

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Payment delays worsening in construction

Small construction businesses have had to wait an average of 42 days for payment during the last year according to research by business finance specialist Funding Options. This figure, the firm says, is up from just over 40 days on average five years ago and has been exacerbated by the fall of Carillion.

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Birmingham highways dispute concludes

Amey has been ordered to pay back more than £50M to Birmingham City Council after the contractor lost a long running legal dispute over a highways PFI in the city earlier this year.

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Legal partnership to support China’s Belt and Road Initiative

A Dubai legal authority has launched a collaboration with Oxford University to help resolve commercial legal conflicts that arise out of China’s $5Tr ‘Belt and Road’ infrastructure initiative, known as ‘BRI’.

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Public to foot £150M Carillion bill

Carillion’s liquidation will cost UK taxpayers an estimated £148M according to the National Audit Office which this week published its investigation into the Government’s handling of the contractor’s collapse.

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Contractors accused of silence over Grenfell role

A lawyer representing the victims of the Grenfell Tower fire have called out key firms involved in the building’s refurbishment for remaining silent on the question of whether their work complied with building regulations.

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Retentions reform coming at last?

Need for retentions reform in the construction industry was demonstrated by the impact of Carillion’s insolvency, writes Jonathan Lyndman of Rosling King in the June issue of Construction Law.

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Power line incident lands fine for contractor

Construction company Mick George Ltd has been fined over £500,000 after a tipper vehicle driven came into contact with overhead power lines during the construction of a waste transfer station in Northampton.

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Construction Law: June 2018

Editor’s comment
Something rotten in the culture?
Editor Nick Barrett argues that MPs should now turn their attention to the government’s procurement system if they want to prevent disasters like the collapse of Carillion happening again.

News 
Our regular news round up focusses on the damning Parliamentary report into the collapse of Carillion; a call to action on modern slavery; and a promise of consultation following the Grenfell Tower disaster.

Legal terms explained
David Nitek and Rebecca Scanlon of Herbert Smith Freehills explain how disputes boards work.

Guest editor
Retentions reform coming at last?
Jonathan Hyndman, Partner at Rosling King, discusses the need for reform as demonstrated by the impact of Carillion’s insolvency earlier this year.

Legislation state of play table
Clyde & Co update us on the progress of legislation affecting construction as it passes through the UK and EC legislative systems. Iain Boyle and Daniel Green on the Construction (Retention Deposit Schemes) Bill.

Reports from the courts
Our regular round up of the court decisions of most interest to construction comes from Andrew Croft and Ben Spannuth of Beale & Company Solicitors LLP, including the first case in which the courts have considered the interplay between project insurance and sub-contractors; and one that carries clear warnings for project monitors and lenders.

Contracts monitor
Value seen in reality checks
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of the JCT Tendering Practice Note, warning that care needs to be taken with qualified tenders. Periods for acceptance should always be stated, he recommends.

CL guide
CL guide to: termination
Our Guides to Construction Law series from Clare Rushton of DLA Piper looks at termination.

Collaboration
Alternatives emerge to BIM Protocol
Professor David Mosey, Director of the Centre of Construction Law and Dispute Resolution at King’s College London, reviews the recently updated Construction Industry Council BIM Protocol, suggesting that FAC-1 may provide a viable, more accessible alternative.

Insolvency
In support of sub-contractors
Anne Wright of Lawrence Stephens Solicitors says there are several vital steps that sub-contractors should take to protect themselves against main contractor insolvency. Ask if the main contract requires a retention before agreeing to one, she advises.

Payments
Focus intensifies on payment issues
Shona Frame of CMS Cameron McKenna Nabarro Olswang LLP reviews the current government and industry initiatives relating to improving the industry’s payment practices. She also looks at recent case law that will impact on this always vexed issue.

Adjudication
Smash and grab adjudications – redressing the balance
Gurbinder Grewal and Tracey Summerell of Dentons review Coulson J’s final TCC decision in Grove – the latest instalment in the ‘smash and grab’ adjudications saga. Leave to appeal has been granted and further developments can be expected on this issue, they warn.

Insurance
The contra proferentem rule in insurance claims
Carillion’s collapse has put the spotlight on credit insurance, which few of its creditors seem to have had. Insurance expert John D Wright of JD Risk Associates explains what cover the market provides.

Alternative dispute resolution
Fraud justifies adjudication stay
Our alternative dispute resolution series article from David Owen of Clyde & Co analyses a new ground that has been found for resisting adjudication enforcement – fraud.