Private funding possible for northern rail links

The government is examining using private finance for a new rail link connecting Birmingham with Manchester, Transport Secretary Louise Haigh has confirmed. She said during a visit to Greater Manchester with Chancellor Rachel Reeves that private finance options are ‘perfectly viable to explore’, the first time a Government source has confirmed rumours that have been around for several weeks.

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Scottish government aims to eradicate low cost tenders

Scotland’s Construction Leadership Forum (CLF) has welcomed Scottish Government moves to eliminate low cost tenders from public sector projects, saying they smother innovation and damage industry productivity and growth.

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Judge tells HS2 and Environment Agency to cooperate

Senior Technology and Construction Court judge Mr Justice Waksman has criticised HS2 and the Environment Agency (EA) for their lack of cooperation in a case concerning groundworks at two HS2 sites in Warwickshire.

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New fund to unlock stalled housing developments

New government funding to unlock housing developments delayed by nutrient mitigation issues will be used alongside planning reforms to achieve government ambitions to build 1.5 million homes over the next five years.

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Scottish government committee demands new approach to infrastructure projects

A dedicated Parliamentary committee should be established to provide oversight on major infrastructure projects being pursued by the Scottish Government where the project is likely to run over multiple parliamentary sessions, a Scottish Government committee recommends.

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Lone worker injury leads to £40,000 safety fine

Nottinghamshire contractor Paul Freeman Ltd was fined £40,000 with costs of £6,263 after pleading guilty to safety breaches that have left a worker paralysed from the chest down.

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Disputes with developers contribute to cladding remediation delays, says NAO

The government should publish a target date for the completion of post-Grenfell dangerous cladding remediation works and provide greater transparency on remediation performance, says the National Audit Office (NAO) in a new report. Disputes with developers over amounts to be paid towards remediation are causing delays, says the report, ‘Dangerous cladding: the government’s remediation portfolio’.

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Construction Law: November 2024

Editor’s comment
Judge advises parties to consider regional courts
Pressure on the TCC could be relieved if parties stayed out of town, Editor Nick Barrett finds a senior judge has advised.

News
Our regular news round up reports on a major review of water industry regulation; a rail group urging the use of private finance; and a call for standard form contracts to be left unamended.

Legal terms explained
Tom Cadman of Herbert Smith Freehills LLP explains what is meant by Building Liability Orders.

Guest editor
Emergency Arbitration: How can this international concept be applied to UK construction?
Guest Editor Mike Waring of Knights suggests proposed new emergency arbitration procedures could help the UK maintain its reputation as a leading arbitration jurisdiction. Although such procedures are regarded as crucial internationally, they are not covered by the Arbitration Act 1996.

Legislation state of play table
Our regular update on the progress of regulations and legislation affecting construction and procurement compiled by Alignment Media.

Reports from the courts
Our regular round up of the court decisions of most interest to construction comes from Andrew Croft, Ben Spannuth and Daniela Miklova of Beale & Company Solicitors LLP who examine a judgment supporting the Scottish law position that an adjudicator’s decision as to liability for their fees cannot be challenged, even if the adjudicator’s decision is later reversed; and another that serves as a reminder that parties are under a duty to mitigate their losses, so only reasonable costs should be incurred owing to another party’s alleged breach, and parties must be able to evidence that such costs have been reasonably incurred.

Analysis
Reports highlight causes of disputes and cost failures on major infrastructure projects
Our latest Analysis series article looks at two recent reports that highlight causes of disputes and management failures on projects. Causes are reasonably easy to pinpoint; solutions remain elusive.

CL guides
EPC Contracts
The latest in our CL Guides series comes from Joanne Bennett and Daniel Warren of DLA Piper UK LLP who look at what EPC contracts involve.

Contracts
JCT Design and Build 24: Ground condition risk allocation
Michael Allan of Pinsent Masons LLP examines the JCT Design and Build contract treatment of ground conditions risk. Additional provisions and reliefs have been introduced in the 2024 revision to deal with asbestos, contamination and unexploded ordnance.

Insolvency
Fail to prepare, prepare to fail – contractual options for mitigating the risk of contractor insolvency
Andrea Leigh of Trowers & Hamlins LLP looks at what can be done to protect against the worst impacts of contractor insolvency. Project Bank Accounts and alliancing contracts are key measures that offer protection to the supply chain.

Adjudication
Adjudication and collateral warranties
Doug Wass of Macfarlanes looks at the recent Supreme Court decision on whether collateral warranties are to be seen as construction contracts under the Construction Act. The decision brings certainty to what was a confused picture.

Collateral warranties
Adjudication enforcement: let’s set-off again!
Karen Gough of 39 Essex Chambers warns that set-off is very unlikely to succeed as a defence to adjudication enforcement proceedings. Recent court decisions show that applications that undermine the prompt payment obligation in the Construction Act may be technically permissible, but will not succeed.

Insurance
The claims process
Insurance expert John D Wright explains the process of making a claim under an insurance policy – a potential minefield for the unwary he warns, as there are many reasons why a claim may not be paid in full, or at all.

Alternative dispute resolution
Renewable energy disputes – new energy, old disputes
Akil Jackson of Dentons UK and Middle East LLP considers alternative dispute resolution (ADR) in the context of renewable energy contracts, asking what approach is being taken and whether there a preference for a particular type of ADR.

Emergency Arbitration: How can this international concept be applied to UK construction?

Guest Editor Mike Waring of Knights suggests proposed new emergency arbitration procedures could help the UK maintain its reputation as a leading arbitration jurisdiction. Although such procedures are regarded as crucial internationally, they are not covered by the Arbitration Act 1996.

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