News in brief: August 2016

The 2016 Immigration Act came into force in July, introducing stricter penalties for the employment of illegal workers.

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Brexit posts major challenges

The fallout from the referendum decision to leave the European Union is still falling heavily and the construction industry like most others is wondering what will happen next.

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Legal terms explained: Proceeding regularly and diligently

Many contracts oblige building contractors ‘to proceed regularly and diligently’ with their works (this wording appears in the principal standard forms of the JCT contract). However, termination for breach of this obligation is risky given the lack of an easily applicable interpretation of this phrase

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Hudson reflects evolving construction law

Guest editor Robert Clay of Atkin Chambers, one of the authors of the recently published 13th edition of Hudson on Building and Engineering Contracts, explains the changes behind the need for a new edition. There may be a need for a separate PFI section after disputes arising from these contracts reach the courts, he says.

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Reports from the courts: August 2016

In our latest court reports analyses Andrew Croft and Simii Sivapalan of Beale & Company Solicitors LLP focus on a ruling concerning whether NEC3 Option W2 is consistent with the Construction Act; and another that highlights the importance of clear and Act compliant payment notice periods.

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Provisions create problems

Contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his scrutiny of RIBA’s Concise Building Contract and finds a raft of potential problems. More definitions would help.

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NIC – government’s response to public consultation

The government has published its formal response to the public consultation on the governance, structure and operation of the National Infrastructure Commission (NIC).

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State of play table 212

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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A first for frameworks

Professor David Mosey of the Centre of Construction Law at King’s College London, explains the thinking behind the launch of the new standard form Framework Alliance Contract by the Association of Consultant Architects. FAC-1 is already being used on construction and infrastructure works as well as professional and environmental services.

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NEC3 – not to be left in the drawer

Will Buckby of Beale & Company Solicitors LLP warns that NEC3 users who think it is good enough to leave the contracts in the drawer are missing out on valuable project and risk management tools, as well as heightening the risk of disputes.

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