State of play table 180

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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Display Energy Certificates

Display Energy Certificates (DEC) show the energy performance of a building based on actual energy usage. The current legislation requires that buildings over 1,000m² occupied by the public sector prominently display a DEC.

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Infrastructure routemap: go with the flow(chart)

Guest editor Ian Stubbs of Pinsent Masons examines the government’s draft procurement routemap to try and see where we are going with infrastructure delivery. The key role of the contract has been bypassed, he argues.

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Legal terms explained: Insolvency

Insolvency has become an increasingly important issue in the construction industry as a consequence of the recession. A company is deemed to be insolvent when it satisfies one of the two tests under s 123 of the Insolvency Act 1986 (IA86). Section 123(1) of IA86, known as the ‘cash flow’ test, is met if a statutory demand for over £750.00, judgment or court order is unsatisfied or the court comes to the conclusion that the company is ‘unable to pay its debts as they fall due’.

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News in brief: April 2013

Retailer John Lewis, which also owns the Waitrose chain, is reported to be considering writing clauses into its construction contracts that would allow it to pay the supply chain directly if main contractors are not paying quickly enough. Other clients are expected to follow this lead if it is successful.

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Safety revision under way

Revised health and safety regulations designed to simplify the legal duties imposed on clients and contactors and to make the health and safety aspects of pre-qualification simpler are to be considered by the Health and Safety Executive (HSE) board.

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Supply chain to be guided

The RICS is producing guidance aimed at private and public sector procurement staff to help them understand the complexities of the construction supply chain, says its new Construction Policy 2013.

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Collaborative client side

Government departments are to work collaboratively in procuring construction services, and will standardise specifications for buildings and premises where possible, according to the Ministry of Justice project delivery head Tony Stocks.

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Construction can’t wait

We report briefly in News on the capability review set up by Commercial Secretary to the Treasury Lord Deighton to assess whether the public sector procurement staff involved with infrastructure have the right commercial and project management skills in place. To equally briefly sum up what his review must conclude – no, they don’t.

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Dispute resolution – getting a grip

Regular contributor David Mosey fills our guest editor slot for the last time before retiring from Trowers & Hamlins after leading their Projects and Construction Group for over 20 years, to take up a professorship at King’s College, London, as Director of its Centre for Construction Law. He argues that facilitated negotiation and mediation under partnering contracts can be the best solution for dispute management.

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