Legal challenge delays £4bn defence contract awards

Over £4bn of Defence Infrastructure Organisation (DIO) contracts are being held up by a legal challenge to a shortlist for part of Tranche 2 of the Next Generation Estates Contracts that was drawn up in June 2012.

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News in brief: July 2014

A Swansea installation firm and a Cardiff maintenance company have been sentenced for serious safety failings after a five-year-old girl, Karolina Golabek, was crushed to death by an electric gate.

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Legal terms explained: Liquidated damages – genuine pre-estimate of loss

Construction contracts often provide for liquidated damages, where the parties will agree in advance what the financial consequences of default, often delay, will be.

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The international contract challenge

Guest editor Shy Jackson of Pinsent Masons asks whether either FIDIC or the NEC contracts can be safely used outside the UK. Well established basic construction law concepts don’t mean the same everywhere.

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State of play table 191a

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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National Energy Efficiency Action Plan and Building Renovation Strategy

The Energy Efficiency Directive 2012 requires member states across the EU to introduce a framework of measures for promoting energy efficiency, in order to achieve the EU’s 20 per cent by 2020 energy efficiency target.

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Reports from the courts: July 2014

Our regular round of of court decisions of most relevance to construction from Will Buckby and Jennifer Webb of Beale and Company focuses on one where a firm line is taken on warranties as to the service life of works; and one demonstrating that time limits for claiming an extension of time and/ or additional costs may act as a condition precedent to obtaining an extension and/or additional costs.

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Notice needed to pay less

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, starts a series analysing the impact of ‘Construction Act’ changes on JCT contract forms with a scrutiny of payment requirements. There has been a complete change of emphasis in some places, he finds.

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Social value in procurement

Scotland’s Procurement Reform Act has received Royal Assent. Robin Fallas of Macroberts warns that there may be a slowdown in contract awards as authorities assure themselves that new procurement processes do not leave them open to challenges.

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Appeal court backs net contribution clauses

The Court of Appeal has overturned an earlier Technology and Construction Court ruling relating to net contribution clauses. Will Buckby and Andrew Croft of Beale and Company analyse a judgment that they say will give encouragement to those who regularly use such clauses.

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