The Peak effect – issues

In the second part of their consideration of the prevention principle James Pickavance and Michael Mendelblat of Herbert Smith identify and analyse key points of contention arising from relevant cases.

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Notices become the payment trigger

The changes to JCT’s contracts demanded by the revised Construction Act are explained by Victoria Peckett of CMS Cameron McKenna. JCT has in general sought to maintain the status quo in its contracts as far as possible.

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Could changes mean fewer disputes?

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, examines the payment provisions of JCT’s standard building contract with quantities. All the hard work of fitting payment provisions of the Construction Act to a standard form has been done, he says.

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Reports from the courts: December 2011

Our regular round up of the court decisions of most interest to construction is provided by Will Buckby and Andrew Croft of Beale & Co, focussing on a case involving the impact of a variation on a bond; and one which clarified the procedure for pre-action disclosure applications.

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Amendments to the Public Procurement Regulations

On 17 August 2011, the government published the Public Procurement (Miscellaneous Amendments) Regulations 2011, SI 2011/2053 (the 2011 Regulations).

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State of play table: 166

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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Unwritten contracts – a good idea?

Guest editor Hamish Lal of Jones Day is sceptical about hopes that removing the need for contracts to be in writing to bring them under the scope of adjudication will lead to cost savings for smaller companies. Litigation might work out cheaper for some.

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Legal terms explained: Economic duress

Parties often complain that they were forced to agree unfavourable terms. Applying commercial pressure does not necessarily constitute economic duress. The previous view was that where economic duress had occurred, the consent of the innocent party to enter into the contract had been vitiated.

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News in brief: December 2011

A TCC ruling will force contractor PC Harrington to pay an adjudicator’s fees despite his ruling being judged unenforceable. Mr Justice Akenhead said adjudicator Philip Doherty was entitled to £22,000 plus VAT from the contractor. which lost its case at adjudication against Tyroddy, which had claimed money owed for reinforcement works, but succeeded in having the decision ruled unenforceable.

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Safety record improves

The latest statistics from the Health and Safety Executive (HSE) show construction injuries at work have fallen by 25% since 2007–2008, while fines for health and safety breaches have risen by 22% in the past year.

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