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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Reports from the courts: March 2013

Our regular round up of the court decisions of most interest to construction from Will Buckby and Ibaad Hakim of Beale and Company focuses on a case concerning liability for the failure of an under designed platform; and another where an adjudicator changed his mind.

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Reality checks a good idea

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, continues his review of the JCT’s new guide to tendering procedure, which suggests some additions that could be made in the next Construction Act revision.

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PF2 – A new beginning for PFI?

Tom Pemberton and Pasquale Pisanelli of Beale and Company outline reforms to the private finance initiative, PF2, that are hoped to generate increased infrastructure investment. Although the new regime is in use for school building, doubts remain whether they will attract investment funds.

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Consistency on-demand or guaranteed?

Kirstin Bardel of Ashurst takes a detailed look at a recent Court of Appeal decision in relation to the differences between on-demand bonds and guarantees, and considers its implications for construction.

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