Procurement – Covid-19

News in Brief: 3 July 2020

Half of small and medium construction businesses say their employees have suffered health issues due to late or unfair payment practices, according to a new survey of firms commissioned by ECA and BESA.

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News in Brief: 26 June 2020

Attempts are being made by main contractors to renegotiate lower contract prices with sub-contractors on projects delayed due to Coronavirus, according to the latest market update from sector analysts Barbour ABI.

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Guided busway defects claim goes to court

Cambridgeshire County Council has lodged a formal court claim against contractor BAM Nuttall for the costs of repairing infrastructure defects on a guided busway that runs between Cambridge and St Ives.

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New corporate culpable homicide offences proposed

A member’s bill has been introduced to the Scottish Parliament which aims to make it easier to hold large companies and their senior managers liable for workplace fatalities. It would significantly broaden the basis by which corporate criminal liability can be identified, lawyers say.

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Housing Secretary releases documents on docklands development planning

Housing Secretary Robert Jenrick is facing growing criticism after documents released in connection with his controversial decision to approve the Westferry Printworks development in East London showed he was in communication with the developer behind the £1Bn scheme.

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More adjudications expected following landmark ruling

Increased reliance on adjudication to unlock disputed payments is expected in construction following last week’s much anticipated Supreme Court decision in the case of Bresco Electrical Services Ltd (in Liquidation) v Michael J Lonsdale (Electrical) Ltd, according to law firm Eversheds Sutherland.

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Productivity falls to provoke disputes

Construction sites are experiencing productivity losses of around 35% due to the impacts of Covid-19, triggering extensive programme delays and spiralling costs, according to new research from Turner & Townsend. An uptick in disputes is inevitable, according to one lawyer.

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Temporary insolvency laws raise risk for small firms

Construction companies threated by liquidation due to the Coronavirus crisis are expected to benefit from temporary changes to insolvency law regarding winding-up orders, but smaller suppliers may be negatively impacted by restrictions on statutory demands, according to law firm Eversheds Sutherland.

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Council wins ruling over £800 million PFI waste plant

The Technology and Construction Court has ruled that problems with the operation of the £800 million Private Finance Initiative Tovi Eco Park in Basildon are due to design flaws, as claimed by Essex County Council, rather than the type of waste it processes, as the operator alleged. Some of the design was based on little more than calculations on the back of a fag packet, the Judge said.

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Companies must pay cladding removal costs, MPs say

A call for construction firms to be made to pay for the replacement of dangerous cladding on high risk residential buildings has been described as “laudable” by one senior solicitor, but may not be possible in all cases without drastic legislation.

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