Editor’s comment
No coherent plan for water investment programme, says NAO report
Editor Nick Barrett asks how, in light of a new National Audit Office report saying the condition of water industry assets is largely unknown, the industry’s companies and regulators arrive at the large numbers approved for water investment programmes?
News
Our regular news round up includes a new regime for corporate crime from the Serious Fraud Office; financial close on a key carbon capture and storage project; and legal action starting against Grenfell Tower tragedy related companies.
Legal terms explained
Zhou Yang of Herbert Smith Freehills LLP explains how adjudication works in cases of insolvency.
Guest editor
Bill could fundamentally change the shape of the planning system
Guest Editor Ben Garbett of Keystone Law examines the Planning and Infrastructure Bill that is now before Parliament, which he says has the potential to address some of the planning system’s fundamental weaknesses.
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 latest round up of the court decisions of most relevance to construction comes from Andrew Croft, Ben Spannuth, and Daniela Miklova of Beale & Company Solicitors LLP, who look at a decision providing a useful reminder that assignments do not transfer liabilities to an assignee and that only the benefit of a contract is transferred; and another that emphasises the importance of clear drafting throughout contract negotiations and including the correct and necessary documents are included in the final version of the contract.
Analysis
Government net zero commitment looks firm
Net zero plans, which will have major impacts on construction, are proceeding apace, despite a Conservative party rollback on its commitment to a policy initiated by a previous Conservative administration.
CL guides
Construction Law Guide to: Letters of Intent
Our latest CL Guides series article comes from Jennifer Price-Thomas of DLA Piper who examines Letters of Intent, offering guidance on common pitfalls to be avoided.
Mental health
Balancing justice and wellbeing while rethinking adjudication culture
Mike Waring of Knights warns that the adversarial nature of adjudication is taking a toll on the mental health of both lawyers and their clients. A culture shift is needed and adjudicators need to take a firmer hand in discouraging toxic behaviours.
Design liability
Contractor vs. Designer: Unravelling design liability differences
Joseph Wittenberg of Turner & Townsend Contract Services warns contractors to be wary of trying to reduce design liability through contract clause wording. The courts will find that a term warranting a specific performance will trump any conflicting clause seeking to reduce the contractor’s design liability to reasonable skill and care.
Green drafting
Limiting construction’s environmental footprint using climate conscious drafting
Alexandra Holsgrove and Corinna Whittle of TLT explain how climate conscious drafting of contract clauses can contribute to the climate change battle. Contracts as well as technical documents can include specific climate obligations.
Insurance
Court ruling could have wide implications for professional indemnity insurance in Northern Ireland
Catriona McCorry of DAC Beachcroft outlines the key changes to building safety legislation in Northern Ireland introduced by the Defective Premises Act (Northern Ireland) 2024. Its impact on construction is highlighted by the recent group action in the case of Ulster Garden Villages & Others v Farrans (Construction) Limited & Others.
Indemnity limits – a qualified promise
Insurance expert John D Wright of JD Risk Associates explains how variations on aggregation causes in policies give rise to problems that look like continuing to keep the courts busy. Every word and phrase will have to be interpreted by the Courts, applicable to the facts of each case, he warns.
Alternative dispute resolution
Design liability in construction
Cheryl Ferguson of Dentons UK and Middle East LLP examines a recent TCC decision. Given the technical complexity involved, construction disputes of this nature can benefit from ADR approaches, she suggests.
