News in Brief: March 2013

Project Bank Accounts (PBAs) are to be used on all construction contracts procured by the Northern Ireland government, the first national administration to make this move. The UK government intends using PBAs for £4,000 million of projects by 2014.

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Routemap to good memories?

A draft best practice guide to delivery of large scale infrastructure projects has been published as part of the government’s Cost Review programme that confirms Private Finance Initiative replacement PF2 as its preferred private financing approach, and supports the use of the NEC standard form contract on public sector projects.

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Time for Technical Referees?

Guest editor Roger Knowles, an independent construction disputes consultant, says it is time to end the grotesque legal expenses that disputes can give rise to. Court appointed Technical Referees could be the solution, he argues.

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Reports from the courts: January 2013

Our regular round up of court decisions, from Will Buckby and Andrew Croft of Beale and Company, includes a ruling which denies that planners constitute a profession; and one that says adjudicators need not be paid when decisions are unenforceable due to natural justice failings.

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Impeccable tender advice

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, takes a look at a guide to tendering procedure from the JCT which he finds to be a very well written attempt to grapple with a difficult topic.

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Court takes pragmatic approach

Ann Levin and Jessica Rajwan of Herbert Smith Freehills examine a court decision that highlights the importance of careful drafting of bespoke arbitration clauses, in a case where the court ruled that the clause on which the case turned was not in fact an arbitration clause.

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Supply chains: get it right

Contractor insolvencies are running at a worryingly high level and represent a serious supply chain management risk. Giles Searby and Daniel Gardiner of Hill Dickinson say the London Olympic games procurement process points to how to minimise the risks.

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Because I’m worth it?

Vijay Bange of Trowers & Hamlins analyses the impact of the recent appeal court ruling that adjudicators are not entitled to their fees if they have breached natural justice rules. There may be scope to extend the ruling to any unenforceable decision.

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Indemnity – simple only in theory?

Insurance expert John D Wright of JD Risk Associates considers the principle of indemnity as it is used in insurance law, examining some landmark cases that shed light on how the courts will decide on what sums to award.

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Better the devil you know

The NEC has proven to be a great success in the UK and is being used internationally as well. David Jones of Pinsent Masons asks whether the NEC could come to supplant FIDIC in popularity.

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