Construction Law: July 2016

Editor’s comment    
Professional negligence adjudication pilot
Adjudication has been a success for the industry and is catching the eye of judges involved in other areas, says Editor Nick Barrett who reports on a pilot scheme to extend its use to professional negligence in fields other than construction.

News
Our regular news round up finds the JCT launching the first of its 2016 edition of contracts; publication of a new edition of industry standard work Keating on Construction Contracts; and publication of a framework alliance contract by  the Association of Consultant Architects, said to be a first.

Legal terms explained
Andy Batty of Pinsent Masons explains ambiguities that can arise in contracts.

Guest editor
When two worlds go to war  
Guest editor Michael Hopkins of Pinsent Masons examines what happens when two worlds collide –adjudication and payment. Which has the upper hand?

Legislation state of play table
Our regular round up of the progress of legislation affecting construction passing through the EC and UK legislative systems from Clyde & Co. Tim Axtmann and Nathaniel Horrocks-Burns provide a commentary on the apprenticeship levy.

Reports from the courts 
Our regular round up of court decisions comes from Andrew Croft and Natalie Ledger of Beale & Company Solicitors LLP includes a case highlighting that mutual indemnity or exclusion clauses between equal parties are likely to be upheld; and an appeal against an arbitration decision relating to interest payment.

Contracts monitor
List of defined terms needed  
Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his analysis of the RIBA Concise Building Contract 2014, warning that further explanation of terms used in relation to insurance is needed.

Dispute avoidance
Early warning and early resolution 
A technology platform based early warning system for spotting potential disputes and resolving them before they have time to fester – science fiction? Martin Burns, Head of Alternative Dispute Resolution Research and Development at the Royal Institution of Chartered Surveyors and Edward Moore, Chief Executive of ResoLex, insist it is fact and will be available this year.

Procurement
The new rules on tendering for concession contracts 
Nick Pimlott and Alexandra Hackney of Fieldfisher examine new rules for tendering concession contracts that represent a regulatory sea change. The risk of legal challenges has risen, they warn.

CDM Regulations
The CDM Regulations one year on
The industry has had a year to get to grips with the revised CDM Regulations. Jane Miles of Dentons reviews the key issues that have arisen over the year and suggests how they can be dealt with.

Contracts
What makes a process plant contract different?
Simon Colegate of Weightmans reviews what it is about process plant contracts that makes them different from construction contracts. Hybrids of the two create problems, as he explains.

It’s not fair
Sean Brannigan QC and Claire Packman of 4 Pump Court analyse recent cases to ask if construction contracts can still be subject to the Unfair Contract Terms Act 1977. If even some of a party’s standard terms are incorporated, the answer could be yes.

Insurance
Professional indemnity – design and build option
Insurance expert John D Wright of JD Risk Associates explains the market for professional indemnity cover for design and build contracts. Contractors need additional clauses to ensure they are properly protected, he warns.

Alternative dispute resolution
The severability of adjudication decisions 
In our latest alternative dispute resolution series article Alex Gandhi and Rachel Chaplin of Clyde & Co examine a recent judgment that extends the principle of severability of an adjudicator’s decision.

Professional negligence adjudication pilot

Alternative dispute resolution (ADR) seems to be growing in popularity and is now available in several forms, most of which the construction sector has benefitted from, particularly adjudication. The industry remains the only sector to have had adjudication thrust upon it by legislation, but its success in construction has been noted elsewhere in the legal and business world.

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JCT 2016 Edition launches

The Joint Contracts Tribunal (JCT) has launched the first of its 2016 Edition of Contracts, the JCT Minor Works family of contracts, alongside a suite of information providing more details on the key areas of change from the 2011 Edition.

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Framework Alliance Contract

The Association of Consultant Architects (ACA) has published what is said to be the first standard form of Framework Alliance Contract, FAC-1.

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Keating new edition published

The new edition of classic construction law text Keating on Construction Contracts has been published. The book is described by publishers Sweet & Maxwell as a first port of call for all research on the history and principles governing building contracts, their practical application and their interpretation by the courts.

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News in Brief: July 2016

Northern Ireland’s Department for Regional Development breached public contract regulations in failing to award a contract for a £100 million road contract to the lowest bidder, according to a High Court ruling.

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Legal terms explained: Ambiguities

Many construction contracts incorporate a large number of documents and many volumes of appendices, which together comprise a substantial amount of written material.

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When two worlds go to war

Guest editor Michael Hopkins of Pinsent Masons examines what happens when two worlds collide – adjudication and payment. Which has the upper hand?

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State of Play Table 211

This table, prepared by Clyde & Co, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to EU Directives and UK legislation, the table includes notes highlighting discussion papers issued by both government and non-government organisations, and commentary on the latest developments.

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Government releases details on the apprenticeship levy

The importance of apprenticeships is recognised across the construction industry, with apprenticeships offering a cost effective labour source whilst helping to ensure a long term supply of skilled labour.

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