Reports from the courts: October 2014

In our regular review of the court cases of most interest to construction Will Buckby and Jennifer Webb of Beale & Company report on two cases, one of which provides what is thought to be the first guidance on the meaning of ‘appropriate deductions’ in JCT’s Intermediate Form of Contract.

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Exception reduces fruitless arguments

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, turns his attention to the role of the Works Contractor under the JCT Management Building Contract 2011. Changes to the clauses affecting reimbursement by the Employer are worth noting.

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The value of work not carried out

Rachel Chaplin of Clyde & Co examines recent court decisions that offer guidance on the valuation of work that has not been carried out. Be wary of the potential consequences of adopting a course of action which falls outside the express provisions of the contract, she warns.

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Constructing safety nets

Many contractors may still be tendering for work at negative margins, possibly operating one major dispute away from the brink. Barrister Ebony Alleyne of Hardwicke examines the common forms of security used by employers to safeguard performance by contractors and/or protect against insolvency.

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The perennial problem of notices

Sean Brannigan QC of 4 Pump Court and Arbitration Chambers, Hong Kong, analyses notice provisions in the light of recent guidance, some of which has been overlooked, from three cases before the TCC. Common themes emerge that will influence future court decisions and arbitrations, he argues.

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That sinking feeling

Subsidence insurance cover is a relatively new phenomenon and claims are a major headache for insurers. Insurance expert John D Wright explains how the courts’ attitude to claims developed.

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Highways – what’s around the bend?

Ben Mullard of Beale & Company reviews the major changes under way in the key highways market that it is hoped will transform the way highway services are procured. A new collaborative approach to contracts has been welcomed by the industry.

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Danger ahead?

New responsibilities are being placed on designers by changes in health and safety law while HSE budgets are being cut. Michael Woolley of Hill Dickinson warns that increasing workloads and the changes to health and safety law may present significant challenges to the industry and its insurers.

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CEDR model mediation procedure changes

Will Cooper of Clyde & Co examines the recent changes to the CEDR’s model mediation procedure, most of which can be welcomed but some of which might be superfluous as well as likely to drive up costs.

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GoCo promises end to stop-go on roads

Legislation to transform the Highways Agency from April next year into a government owned company – a GoCo – was set out in the Infrastructure Bill in April, creating a legal framework for the new entity to oversee England’s strategic roads network.

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