News in brief: October 2014

Corporate manslaughter charges have been laid against Baldwins Crane Hire following the death of a crane driver in an accident in 2001.

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Legal terms explained: Acceleration

Acceleration is a term often used both by parties in construction projects, but there can be questions as to how it operates in practice and how, and to what extent, payment may be due for what are regarded as measures taken in order to accelerate works.

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Reliance letters may be here to stay

Guest editor Steve Timbs, Executive Director of CBRE Building Consultancy, bemoans the recent rise in client demands for reliance letters demanding excessive levels of professional indemnity cover. They seem to be here to stay, he warns.

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State of play table 193

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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ICE’s UK infrastructure overview 2014

The Institute of Civil Engineers (ICE) has published its UK Infrastructure Overview 2014, citing ‘increasingly extreme climatic conditions compounded by demands from a growing population’ as being a threat to the UK’s ability to operate infrastructure at all times and at a sufficiently high level, and recognising that the UK’s ability to compete in the global race depends on the quality of its infrastructure networks.

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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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